Why are there Personal Property Exemptions in Bankruptcy Laws?.
The approach that the state and federal bankruptcy law makers have adopted is to rehabilitate the borrower by implementing a repayment plan that either makes a full or partial settlement of debt owed to creditors. And so by adopting an approach that attempts to rehabilitate the borrower/ debtor is allowed to keep certain types and values of property that are called exemptions instead of liquidating the persons entire estate that would have included the homestead, pensions, investments and many personal belongings; making the person destitute. Exemptions are designed in most states to avoid a circumstance of people becoming reliant on government assistance after they are declared bankrupt so that still have some basic means of doing their job and having living accommodation; although the latter varies from state to state. If the homestead is affected by bankruptcy it may be worth putting the ownership into a Common Tenancy form of ownership (enquire of mortgage provider) to divide the e
The approach that the state and federal bankrupcy law makers have adopted is to rehabilitate the borrower by implementing a repayment plan that either makes a full or partial settlement of debt owed to creditors. And so by adopting an approach that attempts to rehabilitate the borrower/ debtor is allowed to keep certain types and values of property that are called exemptions instead of liquidating the persons entire estate that would have included the homestead, pensions, investments and many personal belongings; making the person destitute. Exemptions are designed in most states to avoid a circumstance of people becoming reliant on government assistance after they are declared bankrupt so that still have some basic means of doing their job and having living accommodation; although the latter varies from state to state. If the homestead is affected by bankruptcy it may be worth putting the ownership into a Common Tenancy form of ownership (enquire of mortgage provider) to divide the eq
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