A lot of people have this idea in their heads that if they file for bankruptcy, they lose all of their stuff. That is not true.
While filing for bankruptcy is not the easiest thing in the world for a variety of reasons, it also is not the end of the world, despite how it may feel. Yes, there are a lot of factors to take into consideration, not the least of which is a change in lifestyle, meaning taking a good hard look at how you spend money. A lot of people think that when they file for bankruptcy, they lose everything they have. Good news – that is not true.
Keep in mind that every bankruptcy case needs to be assessed on its own, which means every case is different and yet similar. This is only to say that in most cases, the debtor will not be coughing up all of their property and possessions. This is because the law does give a wide allowance in terms of property exemptions. This is good news because during and after the closing of your bankruptcy case, your exempted property is protected by law.
Here is something that most people do not know, or do not understand. Exempted property means you are allowed to keep your property and the equity in it. That bears repeating: you get to keep the property and the equity in it, meaning the difference between the value of your property exemption and what you still owe. This is definitely something you need to discuss with your Iowa bankruptcy lawyer to get a good handle on how it works to your advantage.
As with just about everything, there are other points you need to be aware of as you move forward through the bankruptcy process. For example, each state has the right to choose which exemption will apply to your case, meaning state or federal exemption. In some cases, and this too is something your Iowa bankruptcy lawyer will talk to you about, some states let you make a choice between which route to take.
Typically speaking, federal bankruptcy exemptions are better for you. However, that does not mean state exemptions should be ruled out. This is yet another reason why you need a skilled Iowa bankruptcy lawyer, to help you get through the maze of filing bankruptcy. To get a good grasp as to which type of property exemption would apply to you, you need to talk to a qualified bankruptcy lawyer. That way, you are on the right track.