Macco Law Group, LLP

Filing for bankruptcy does not mean you will lose everything

Filing for bankruptcy does not mean you will lose everything

There is a common misconception that you will lose all or most of your assets if you file for bankruptcy. Understandably, this idea scares many people away from seeking helpful debt relief through Chapter 7 or Chapter 13 bankruptcy. It is important to know, however, that you will not lose everything by filing for bankruptcy, and at Macco & Stern LLP, we can help you protect and preserve your assets.

Bankruptcy exists to give people who are overwhelmed with debt a viable way out. If the process required you to give up everything you have to pay back debts, it wouldn’t do much good because you would be left with nothing. Although you will likely be required to pay back some debts, or a portion of some debts, there are certain assets that are protected in bankruptcy.

Under New York laws and the Bankruptcy Code, assets that are exempt from creditors in a bankruptcy filing include pensions and certain retirement accounts, host home goods and clothing, disability benefits, personal injury awards, workers’ compensation benefits, and life insurance policies. Depending on your unique circumstances, you may also be allowed to keep your car and your home.

While some assets are exempt under the law, others can be protected with the right legal guidance. The attorneys at our law firm have the experience and knowledge necessary to protect your rights through the bankruptcy process. To learn more about protecting your assets in Chapter 7 or Chapter 13 bankruptcy, visit the Preserving Assets page of our website.