All property owed by a bankruptcy petitioner falls under the supervisor of the bankruptcy court’s trustee that is assigned to your case once the paperwork is in the hands of the court. Whether you have filed Chapter 13 or Chapter 7, the court may ultimately advise that some of your property and possessions be liquidated to pay off creditors. However, the court recognizes that some property needs to be retained for day to day living and allows such belongings to be termed “exempt” by your Columbus bankruptcy lawyer and the bankruptcy court.

The definition of “exempt” assets varies from state to state but generally the term means any assets that cannot be seized by creditor of the court. These items include things such as your toothbrush, your hair brush, and “ordinary” furniture (as compared to exotic or very expensive furnishings). Things deemed medically necessary are also considered exempt in most states. Some examples are walkers, contact lenses, prosthetic limbs, crutches and wheelchairs. Columbus bankruptcy advocate can provide you with a more complete list accepted by the Ohio bankruptcy court.

The limits on the monetary value of these assets also varies from state to state. For example, the value of your clothing may be exempt up to a certain value and non-exempt over that. Jewelry also can be retained up to certain limits. For example, if your wedding ring is extremely expensive or exotic, it may not be considered exempt. But, before you panic, check with your Columbus bankruptcy attorney.

Most of the following assets are considered exempt in most states:

? Unpaid wages
? Some of the equity in a residence.
? Some of the equity in a vehicle.
? Life insurance value
? Tools of a trade or profession, usually up to a set limit
? Reasonable necessary clothing
? Reasonably necessary furniture
? Household appliances
? Jewelry, up to a set limit (usually a few hundred dollars)
? Pensions
? Public benefits

The bankruptcy courts know that by the time a debtor has reached the point of filing bankruptcy, their assets have dwindled down in both number and value and are mostly either exempt or worthless. In the event that the trustee assigned to your case deems any of your assets “worthless”, he or she may choose to abandon that asset, meaning that he or she finds it worthless and you may keep that asset. A number of assets may be considered too “cumbersome”, meaning that that asset is either too large, too unique or too hard to sell. In this case, that asset may be abandoned by the court as well.

The average bankruptcy attorney from Columbus is quite busy. Much busier than in previous years. This is due to the economic storm that has hit Columbus and other regions of the country very hard. This is a region that is highly dependent on manufacturing, and of all sectors of the economic system, manufacturing has been probably hit the hardest. Most every Columbus bankruptcy attorney has a full waiting room.

Most of the individuals waiting to see an attorney had no idea that they would be in this sort of position. Up until this perfect economic storm hit the region, these were solid bill paying citizens. One wave or other crashed over them: real estate crash, job loss, savings loss. For many it was too much. They could not recover.

A number found their attorney by referral from relatives or from trusted friends. It may be surprising how many people in recent years have had to reorganize their finances with the help of the court. Failing finding a lawyer by referral some turned to the internet. Most law firms have web sites, and the same with bar associations.

Once a lawyer is retained a case can be evaluated and a decision reached on what to do. There is no guide, so each case has to be looked at individually. A person may, upon the advice of the attorney, file a Chapter 7 or Chapter 13 consumer bankruptcy. Chapter 7 will liquidate all but exempt assets and creditors repaid. Chapter 13 will reorganize finances and a payment schedule worked out for creditors.

It is always a good idea for each person to be their own advocate. The attorney will do what is thought correct, but often will not know what goals an individual has for post bankruptcy. The best advice is to be your own best advocate.

A bankruptcy attorney in Columbus is working in the troubled economic trenches to help to stabilize the local economy and work out a fair solution between debtors and creditors.

Almost every bankruptcy attorney from Columbus reports that their business is up over last year, and they expect next year to be even busier. Each day brings some new announcement with the consequences being either plants shutting down or businesses closing. Each wave of tough news brings a longer waiting list to the typical Columbus bankruptcy attorney. The waiting rooms are filled with survivors of the economic tsunami that has struck the nation and the region.

Many people waiting in the attorneys’ lobbies are really not prepared to be there. Their finances have taken one hit after another and have brought them to the absolute brink of economic disaster. Their phones ring day and night with creditors wanting to be repaid, their credit-worthiness is destroyed and they have sometimes suffered emotional and personal problems, perhaps even the break up of their marriage. Sometimes there are even health issues due to the stress.

Some had to scramble to find an attorney. Most people are not prepared to deal with financial disaster. It is not that they did not see it coming, but thought that the problems facing them would somehow abate. Unfortunately, these problems usually do not take care of themselves.

Once an attorney is retained then an individual can work to reorganize their finances. The lawyer may advise to file Chapter 7 and liquidate all but exempt assets or the advice may be to file Chapter 13 reorganization and set up a schedule to repay creditors.
In some cases the lawyer may advise no formal filing at all, but to work with creditors outside the court and repay their debts.

The region’s economy is under severe strain, and it does not show any great improvement in the near future. Each Columbus bankruptcy advocate is working client by client to help get the economy back on a stable footing.