In this article, we will go over some of the answers to what assets you will be able to keep, and what laws protect them.
The bankruptcy law in Missouri allows you to exempt a vehicle up to $3000, or $6000 if you’re married. In Kansas, the exemption is $20,000 and a lot more cars are protected. As a general rule, those who have a car loan or lease are allowed to keep making the payments and retain the car. Many automobiles that are not subject to loans are protected as well. Regardless, be sure to converse with an attorney to find out whether or not your property and possessions are secure.
The Kansas homestead protection laws ensure that the majority of homesteads are secure under bankruptcy. Missouri homestead laws are not as protective but do protect some homes. Missouri residents can choose the federal homestead exemption instead of state protections.
The federal exemption amount is $22,975 and may be applied and married couples may double this exemption to $45,950. For those who own an expensive home, it may not be wise to file a Chapter 7 bankruptcy. This is because the Court has the ability to sell it to pay your bills. If you have decided that the home is too valuable to give up, it is important to know that filing Chapter 13 bankruptcy secures homes. Nonetheless, make sure to talk to an attorney to make sure your home is protected under bankruptcy laws.
Your Bank Accounts
You will not need to close your bank account(s) after filing for bankruptcy. There is no law that forces you to close bank accounts.
In regard to immigration status, filing for bankruptcy will have no effect. You still maintain the ability to receive your green card and become a resident.
Filing for Chapter 7 bankruptcy does not involve your employer. There are laws that prohibit employment discrimination against employees who file for bankruptcy so that it will have no effect on your job.
Garnishment of Your Wages
Filing chapter 7 does not mean that your wages will be garnished. It is illegal for credit card companies and medical providers to garnish your wages after you file for Chapter 7 bankruptcy.
Pension and Social Security
Regardless of how much money you have saved up for retirement, bankruptcy laws protect your 401(k) pension, opened IRAs, and social security.