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Exemptions provide financial stability post-bankruptcy

| Jun 6, 2020 | Personal Bankruptcy |

Even during a strong economy, many Americans are only one unfortunate event away from financial instability. This event oftentimes arises from the onset of an unexpected medical condition that requires extensive treatment or the loss of a job. But a divorce can also rock your financial footing, and some individuals simply struggle to find financial security due to low wages or other circumstances in life.

The good news for those who are facing overwhelming debt is that relief may be found through personal bankruptcy. If you’re reading this post, then you might have some reservations about the process. This is common because many people think that bankruptcy, while alleviating them of their debt obligations, will leave them without any financial resources. This simply isn’t the case.

Virginia law recognizes a number of bankruptcy exemptions that allow you to keep certain assets even after debt is discharged through bankruptcy. For example, up to $6,000 in a vehicle’s value may be exempted, and so, too, may up to $5,000 in family heirlooms. Clothing up to $1,000 can be exempted while you can also keep up to $5,000 worth of furniture and appliances. There are other exceptions, too, including one pertaining to your homestead, tools you might use for your profession, your pets, medical equipment, and even your guns if you have any. There are limitations on the value of assets that are exempt under the law, but they are generally high enough to leave you in a decent financial position post-bankruptcy.

As you can see, a successful bankruptcy doesn’t mean that your going to be left without the resources you need to get by. On the contrary, by pursuing personal bankruptcy you might be able to escape your debt burden while setting the stage for financial stability moving forward. If you want to join the millions of Americans who have found the debt relief and second chance they deserve through bankruptcy, then it might be time for you to discuss the matter further with an attorney who is experienced in this area of the law.