You Can Keep Assets Even If You File Bankruptcy

One of the most common misperceptions about Bankruptcy is that you will lose all of your property.  That is simply untrue.  You are permitted to retain a certain amount of property.  You will list all of your assets on your “petition” and the schedules related to the petition.

You, often with the assistance of your attorney, then determine the value of such property.  The attorney applies the property exemptions allowed under the law that are applicable to your property.

If you are filing a Chapter 7 the exemptions are often allocated in such a way that you will be able to keep most, if not all, of your property.  If for some reason the exemptions cannot protect all of your property, you will know up front that you could lose a particular piece of property.  When certain property cannot be protected, but you do not want to lose that property, you would most likely file a Chapter 13.  A Chapter 13 calls for a repayment plan which can allow you to make enough payments to creditors to retain your unprotected property.

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