Determining Equity For Everett Bankruptcy
Determining how much equity you have in an asset is very important when you are deciding to declare Everett bankruptcy. The definition of equity is the amount of money a person can sell an asset for beyond what is owed on that asset.
For example if a person has a house that they can sell for $320,000 but only owes $300,000 on the mortgage, the extra $20,000 is the equity in the asset. This can be applied to any asset that a person owns.
Equity is important when deciding to file bankruptcy with an Everett bankruptcy lawyer because in Chapter 7 bankruptcy the court will take and sell any non-exempt assets. The court decides whether an assets is exempt by evaluating the equity in the asset.
The courts have put a specific limit on the equity in each type of asset and if the equity in an asset is larger than that set limit, then that asset is non-exempt. If the equity is smaller than the set limit, then that asset is exempt and the court will not take it an sell it.
Determining which of your assets are exempt and which are non-exempt will also help you determine which type of bankruptcy to file. The court will take non-exempt assets in Chapter 7 bankruptcy but does not take any assets in Chapter 13 bankruptcy.
Often times, people who have a lot of non-exempt assets will decide to declare Chapter 13 bankruptcy so that the court will not take any of their assets. People who do not have many non-exempt assets will usually declare Chapter 7 bankruptcy. An experienced Everett bankruptcy attorney can help you decide which type of bankruptcy will work best for your situation.
The best way to ensure that you correctly calculate the equity in assets is to contact an Everett bankruptcy lawyer.
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Amazing article! I definitely enjoyed reading it, and learned quite a bit...I will refer it to anybody that is curious about the subject matter.
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