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Two ways to protect your family heirlooms when filing bankruptcy

On Behalf of | May 19, 2022 | bankruptcy |

If you are facing overwhelming debt, you are not alone. Many other Americans are wearing the same shoes. Fortunately, filing for bankruptcy is an effective way to deal with insurmountable debt.

People know that sometimes they must give up some of their property when seeking bankruptcy in Belleville, Illinois. Although it hurts, the benefits typically outweigh the pain. What people dread the most about giving up their possessions is the risk of losing family heirlooms and sentimental items.

You may be able to keep some of them

You can choose from Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is the most popular choice for most. Both options may allow you to hold on to your sentimental items and family heirlooms.

Chapter 7 wild card exemptions

In Illinois, you are allowed up to $4000 in wild card exemptions. If the things you want to keep are not extremely valuable, you can use this exemption to preserve items passed down to you through the generations.

The Chapter 13 option

If you file a Chapter 13 bankruptcy, you generally keep all of your assets. So if you may lose items in a Chapter 7, Chapter 13 is a useful alternative. With this option, you do not typically give up your possessions. Instead, you work with the bankruptcy court to reorganize your debts and create a repayment plan. Those who earn too much money to qualify for Chapter 7 or simply wish to preserve their possessions usually turn to this form of bankruptcy.

Learning more about your Illinois bankruptcy options can help you identify which form of bankruptcy will improve your situation. Contact a bankruptcy attorney to review your alternatives.