Tuesday, August 23, 2011
Advantages and Disadvantages of Filing Bankruptcy - Advantages: Part 2
The filing of bankruptcy has its advantages and disadvantages. This is the second part of a 5 part series on the advantages of filing filing bankruptcy.
Protecting Assets from Legal Process. Bankruptcy provides protections for many of one's assets from garnishment and initiation or continuation of collection efforts. The result would be having your checking account, savings account, automobile, and all other assets protected from collection efforts, such as garnishment, for debts you owe prior to the filing of the bankruptcy.
The amount of assets that can be protected will vary from state to state, depending on the laws enacted within that particular state. For example, in Florida, homestead has an unlimited exemption, whereas most states have a limited homestead exemption, however, personal property may be somewhat limited, depending on the circumstances of that particular case. But in either case, bankruptcy provides the advantage of only having to claim the exemption one time, instead of having to repeatedly apply exemptions in response to collection efforts.
Also, by having bankruptcy serving to protect collection efforts, such as garnishment, it can also have the indirect effect of protecting ones employment. If you are considering bankruptcy, you should seek the advise of a local bankruptcy attorney in your area.