Will a Chapter 7 Bankruptcy Filing Stay Foreclosure, Divorce and Civil Actions?
So, there are other exemptions that can be used to a person’s advantage when filing for bankruptcy. Here is another benefit for people filing the true Chapter 7 bankruptcy. A person who’s in the position of filing for bankruptcy may be involved in some type of foreclosure proceeding.
A Foreclosure Proceeding May Be Stayed until the Bankruptcy Is Settled, as Well as Civil Actions and Divorce Proceedings
That foreclosure proceeding could be stayed until the actual bankruptcy is settled. Once you file any type of bankruptcy proceeding, it stays all other actions at that point in time, including a divorce or any other type of civil matter.
What Other Exemptions Are Available to People When They Are Filing for Bankruptcy?
Interviewer: Are there any other beneficial exemptions that people are not commonly aware of that are available to them during a bankruptcy filing?
Are You Allowed to Claim an Exemption on Your Vehicle during a Bankruptcy Filing?
Adam: Yes and there will be available to be exemptions you can claim on vehicles. Typically we don’t see the trustees go out there and examine the vehicles. You could use one of the online car valuation sites, such as Edmund’s, to get a valuation. They don’t typically go out there in person to examine the vehicle.
You Can Claim an Exemption and It Is Advisable to Use an Online Valuation Service to Determine Value
Because you can claim this exemption for a vehicle, as you are going through the bankruptcy process, the trustee they does not necessarily know what the exact condition of a vehicle is. Rarely will they go out and see if it’s in good, poor, fair or whatever type of condition. If you use an online site to find a valuation for your vehicle, they are likely to go along with that value.
Interviewer: What’s the exemption for a vehicle nowadays?
You Can Incorporate the Wild Card Exemption Along with Your Vehicle Exemption
Adam: I believe it’s currently right around $4,000. Now, again, you could use that wild card exemption if you have a $6,000 vehicle that you don’t owe money on and also incorporate the $1,000 wild card exemption.
By Adam Hunt