Many people ofter wonder, “Can I Keep My Property if I File for Bankruptcy?” If you decide to file for Chapter 13 bankruptcy, you will keep all of your property. Chapter 13 is a reorganization bankruptcy. Through the filing you and the bankruptcy court come up with a new repayment plan that can help you pay off your debts more easily in a process that takes about 3 to 5 years. Because you still intend to pay off your debts, you get to keep your assets such as your home, vehicles, and other property, as long as you continue to make payments through the plan.
In Chapter 7 bankruptcy, you are asking the bankruptcy court to discharge most of your debts. During this process, the bankruptcy trustee can seize your property, sell it, and use the proceeds to pay off the creditors. Some property is exempt through state laws. Exemptions can include equity in your home, insurance, retirement plans, personal property such as clothing and furniture, public benefits, and tools for your job.
If you have any more questions concerning how bankruptcy will affect your property, call Hathaway Law today!