Economic times are tough at the moment, and it is easy to end up in financial distress that seems impossible to get out of. Often, people take advantage of being able to get credit, and they get so much that they simply can’t afford to continue paying high interest rates to their creditors. They feel like they are never going to be able to get back on track financially, and they are always careful about answering the phone, out of the fear that it is bill collectors who are calling. This is not a good way to live. In fact, it can be extremely stressful, which can lead to physical illness.
One option that people have is to declare bankruptcy. It is important to understand Chapter 7 bankruptcy laws in Washington, DC. This type of bankruptcy is known as liquidation, because the trustee can sell the filer’s non-exempt property. A lot of people fear this process, because they think that they are going to lose everything they own. This is not the case, and it is important that those considering doing this contact an attorney who can help them understand all of the laws, and let them know just where they stand. The attorney will let clients know which property is exempt, and that they are allowed to keep. Exemptions include:
- Homes -; A home can’t be taken when one files for this type of bankruptcy, as it is a necessity of life.
- Income -; Only 25% of a person’s income may be taken.
- Vehicles -; A person who has filed is able to keep one vehicle, as valued at $2,575 or less.
- Household Goods -; Items valued up to $8,625 may be kept by the person filing. This includes furniture, clothing, books, musical instruments, appliances, and even animals and crops.
- Tools -; Professionals may keep books and tools that they need for their trades.
- Family Photos -; These are memories, and won’t be taken away.
The best way to understand the laws surround Chapter 7 bankruptcy in Washington, DC is to contact the attorneys at Andrews Law. They can help clients get the best results, and lose the least amount of their assets.
