Debts can be overwhelming, leaving you feeling hopeless and helpless. If you're considering filing for bankruptcy, you're not alone. Millions of Americans file for bankruptcy every year. While it's not a decision to take lightly, it can be a necessary step towards starting fresh. In this blog post, we'll discuss what you can keep when filing for Chapter 7 bankruptcy and the steps to take when filing. We at Robert H Johnson Bankruptcy Attorney are here to help alleviate your financial stress and guide you through the bankruptcy process.

When you file for Chapter 7 bankruptcy, your assets will be evaluated and liquidated to pay off your debts. However, there are exemptions that will allow you to keep some of your property. These exemptions vary by state. In New Jersey, you can keep your primary residence, personal property such as clothing, furniture, and appliances, and a certain amount of equity in your vehicle. Retirement accounts are also typically exempt from liquidation. It's important to consult with an attorney to determine which exemptions apply to you and how to properly claim them.

The first step when filing for Chapter 7 bankruptcy is to complete credit counseling with an approved agency. This can be done online, over the phone, or in-person. Once you've completed credit counseling, you'll need to gather financial documents such as tax returns, pay stubs, and a list of your assets and liabilities. You'll also need to complete a bankruptcy petition and submit it to the court. It's highly recommended to work with an experienced bankruptcy attorney during this process to ensure accuracy and to avoid common mistakes.

After you've submitted your bankruptcy petition, an automatic stay will go into effect. This means that creditors will no longer be able to attempt to collect from you or pursue legal action. You'll then attend a meeting of creditors where you'll be questioned by the bankruptcy trustee about your financial situation. Following this, a trustee will liquidate any assets that are not exempt and distribute the proceeds to your creditors. In most cases, this is the end of the bankruptcy process and your remaining debts will be discharged, meaning you are no longer responsible for paying them.

Filing for Chapter 7 bankruptcy can help you get a fresh start and relieve your financial burdens. However, it's important to understand the process and your legal rights. Working with an experienced bankruptcy attorney can make this process much smoother and ensure that your assets are protected. At Robert H Johnson Bankruptcy Attorney, we're here to help residents of North Carolina navigate through bankruptcy and achieve a brighter financial future. Contact us today to schedule a consultation and take the first step towards financial freedom.