What assets can I protect in a Chapter 11 bankruptcy?

In California, Chapter 11 bankruptcy law allows individuals or businesses to protect certain assets in a Chapter 11 bankruptcy. The key assets that can be protected in Chapter 11 bankruptcy are those that are “exempt” or “protected” from the bankruptcy estate. Exempt assets are property that the debtor chooses to keep despite being in bankruptcy and cannot have any of the value taken away by the trustee. These assets may include: • Homestead or residential property • Personal belongings or household items • Motor vehicles or other transportation • Necessary clothing • Retirement accounts • Social Security or veteran’s benefits • Insurance proceeds • Tools of the trade • Health aids • Cash on hand In addition, certain debts may also be discharged or reaffirmed in Chapter 11 bankruptcy, such as credit card debt, medical bills, and personal loans. Depending on the jurisdiction, some forms of income may also be protected. There are also protections for creditors, such as protecting certain property from being sold in order to repay debts. Overall, Chapter 11 bankruptcy law in California, gives debtors the opportunity to protect certain assets while reorganizing and restructuring their finances in a way that is beneficial to both creditors and the debtor. This allows the debtor to start fresh without sacrificing their most essential possessions.

Related FAQs

What assets can I protect in a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts