Personal bankruptcy is a very real way to alleviate your debt burden. But a lot of people are confused by the process, or they have misconceptions about what bankruptcy could mean for them. One of the biggest myths out there is that a personal bankruptcy will strip you off all your assets, leaving you with nothing once all is said and done.
The truth of the matter is far different. There are several bankruptcy exemptions that you can utilize to protect your post-bankruptcy financial stability. Let’s look at some of them here so that you have a better understanding of what the bankruptcy process can do for you.
Bankruptcy exemptions available to you in a Maryland bankruptcy
There are several bankruptcy exemptions that you may be able to utilize. This includes:
- More than $20,000 in equity build up in your home.
- Thousands of dollars in work-related assets such as tools, uniforms and equipment.
- Up to $1,000 in home furnishings and personal goods including clothing, furniture and appliances.
- Your burial plot.
- A certain amount of your income.
- Your retirement assets.
- Cash and other “wildcard” assets up with a total combined value of up to $6,000.
There may be other exemptions that you can use to your benefit, which is why it’s important that you understand the law and how to apply it to your unique set of circumstances.
Do you have questions about pursuing personal bankruptcy?
If so, then now is the time to seek out the answers needed to make the fully informed decisions that are best for you. Only then can you rest assured that you’ve done everything you can to protect your short and long-term interests.