If you are considering bankruptcy this is a common question. Bankruptcy cases allow for certain property exemptions. Although all your property must be listed, the value of many everyday things can be exempted from the bankruptcy process. In some cases, you may even be able to exempt your vehicles or your home equity.
The goal of a bankruptcy is to receive a discharge — A federal court order to permanently stop your creditors. Getting a discharge is complicated, but once issued it will free you from your debts — with certain exceptions. The exceptions include: court-ordered child support, student loans, certain taxes, certain criminal penalties and other “special category” debts.
When a bankruptcy case is filed, a federal court order stopping collection actions activates. This is the power that stops foreclosures, garnishments, vehicle repossession and certain other actions.
But, there are exceptions. . . If you had one or more bankruptcy cases dismissed during the last year, this power might be weaker or even unavailable.
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