Bankruptcy involves the complete liquidation of an individual’s assets, (who is a person rather than a company) with the proceeds used to pay off the debts. However, the debtor can retain certain property that is specifically “exempt” such as tools of one’s trade, a solvent spouse’s equity in a house, and some personal effects.

You may lose your home (depending on your individual case) but it does enable you to get out from under the burden of debt more quickly.

Filed under: BANKRUPTCY

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