When you consider filing for bankruptcy, you may worry about losing all your assets. You may think the court will expect you to sell everything you have and start over. Between your family home and all your possessions, you worry that a judge will tell you to sell it all when you file.
But a bankruptcy in Mississippi is not meant to make you poor. While you will have to give up extra assets, some of your property stays exempt. By keeping these items exempt, you have a base to rebuild your finances.
You will let the court know about every asset you have
When you go through the Chapter 7 bankruptcy process, the court will have you list out all assets you own and the debt you have. These all become protected from any creditors with an automatic stay while you go through the bankruptcy process.
Your home and your car can stay exempt
You will also list out what you want to keep exempt from your bankruptcy. You can keep your house as long as you have $75,000 or less in equity over the mortgage. And the court lets you keep up to $10,000 of personal property, which can include your car and any jewelry or cash you have on hand.
The court can liquidate any property above and beyond this amount. But they hope to help you keep a steady base to start fresh.
Keeping certain assets exempt helps you rebuild your finances
When you go through a Chapter 7 bankruptcy, the primary goal of the process is to let you restore your finances. The court recognizes that your house and your car are essential to you having a job and building a future. You will have to keep paying your mortgage and car payments after the bankruptcy. But you don’t have to worry about losing these assets to liquidation.