Whether you can keep your property if you file for bankruptcy depends on a number of factors, including the type of bankruptcy you file, the exemptions available to you, and the value of your property.
In Chapter 7 bankruptcy, which is also known as liquidation bankruptcy, your non-exempt assets may be sold to pay off your creditors. However, most people who file for Chapter 7 are able to keep most or all of their property through exemptions provided by law. These exemptions can vary depending on the state you live in, but they generally allow you to protect certain types of property, such as your home, car, and personal belongings.
In Chapter 13 bankruptcy, which is also known as reorganization bankruptcy, you can typically keep your property while repaying your debts over a three to five-year period under a court-approved payment plan. However, your plan payments must be sufficient to pay off any secured debts (such as a mortgage or car loan) and a certain percentage of your unsecured debts.
It’s important to note that the exemptions and rules regarding property can be complex, and the outcome can vary depending on the specifics of your case. Therefore, it is advisable to consult with a qualified bankruptcy attorney to determine how bankruptcy may affect your property and what options are available to you.
If you have any questions about this post or if you’d like to speak with an experienced bankruptcy lawyer about your situation, contact us for a free confidential consultation at (510) 761-6230.