Chapter 7 bankruptcy exemptions can help filing parties protect their property from the bankruptcy process and enjoy debt relief from overwhelming debt. Chapter 7 bankruptcy is a liquidation bankruptcy process that allows the filing party to liquidate non-exempt assets to repay creditors and enjoy debt relief.
Chapter 7 bankruptcy exemptions exempt certain property from the liquidation process. The intention of the bankruptcy process is not to make the filing party start from scratch but allow them to enjoy the benefits of a fresh financial start. Chapter 7 bankruptcy exemptions include exemptions for homes and vehicles. In Illinois, bankruptcy exemptions protect a certain amount of equity in both a home and a car. This may provide some measure of comfort to consumers considering personal bankruptcy protection options and how bankruptcy options can help them.
In addition, Chapter 7 bankruptcy exemptions can also protect personal property such as clothing and furniture. In Illinois, all of the filing party’s retirement and pension is also protected. Wild card exemptions can also protect property that is not protected under a specified category or property that exceeds the limit for a particular exemption category. In Illinois, the wild car exemption protects any property valued up to $4,000. For those who qualify, Chapter 7 bankruptcy carries the usual protections of an automatic stay and a debt discharge.
Personal bankruptcy protections can help struggling consumers enjoy a fresh financial start without having to start over. As a result, those considering bankruptcy should understand the protections the process provides.