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Is It Possible For Me To Keep Any Of My Assets Once I Filed For Bankruptcy

Is It Possible For Me To Keep Any Of My Assets Once I Filed For Bankruptcy

I am considering filing for bankruptcy, but I want to know if I will be able to keep any of my assets, including my house, my car, my cash and my jewelry.

What Is The Difference Between Bankruptcy Types?

Getting to keep assets depends on the type of bankruptcy you file for and what state you live in. Because Chapter 7 bankruptcy and Chapter 13 bankruptcy are fundamentally different, they have different rules; because each state has its own rules, how the laws are implemented will vary as well. Finding a knowledgeable bankruptcy lawyer will aid in filing the right type of bankruptcy for your unique situation.

Generally speaking, a Chapter 7 filing, also known as liquidation, discharges specific debts and gives the debtor a clean slate. Virtually all of the debtor's property is sold by an appointed trustee to pay for debts. This is known as liquidation. A Chapter 13 filing, also known as a reorganization, allows the debtor to pay off all of their debt over a period of time. The debtor is allowed to keep their property as long as they fulfill their obligations to pay all of their debts per the bankruptcy ruling by the court.

What Assets Am I Able To Keep?

In a Chapter 7 filing, generally, the debtor is allowed to keep exempt assets, such as:

  • Your home
  • Your vehicle
  • Household property and appliances
  • Jewelry
  • Clothing
  • Life Insurance

All other items in your possession that are not included in the exempt listings for your state and the federal statutes will be included in the liquidation.

In Chapter 13 cases, since property is not liquidated, there are typically no exemptions. The value of your assets are used to figure out your monthly repayment obligations.

Each bankruptcy is unique, and what you get to keep largely depends on what type of bankruptcy you will be filing and the rules of the state in which you will be filing in. A Chapter 7 filing liquidates assets in order to give debtors a clean slate. A Chapter 13 filing reorganizes a filer's debts, allowing them to repay them off completely over a period of time and to keep their property during the process.