Lemeh & Associates PLLC
What Can You Keep When Dealing with Bankruptcy?
For many, bankruptcy conjures an image of someone taking every possession and selling it off to pay creditors. Depending on the case, a court-appointed trustee will come and sell off certain belongings. However, the reason bankruptcy exists is to free you of your debts without forcing you to give up your most important possessions. Here's a brief guide to which possessions you can keep when dealing with bankruptcy:
When you file Chapter 13 bankruptcy, you can typically keep all of your belongings. As long as you make payments according to your agreed schedule, no trustee will touch any of your property. If you still have an income and want to keep everything, Chapter 13 is a great option.
Though Chapter 7 bankruptcy can wipe out your debts without payment, a trustee will sell off some of your belongings and give the money to your various creditors. These belongings often include a second home, a second car, stocks and bonds, recreational vehicles, any cash you have on hand, and more.
A trustee, however, will never take all of your belongings when you file for Chapter 7 bankruptcy-there are certain exemptions. These exemptions include your home, your clothing, public benefits (such as social security or unemployment), insurance, and more. Though bankruptcy can be a very difficult time, you'll still be able to keep your most important pieces of property.
If you have any questions about what you can and cannot keep when filing for chapter 7 bankruptcy or chapter 13 bankruptcy, contact Lemeh & Associates PLLC. Our family-oriented law firm specializes in bankruptcy. For more information, give us a call today at (901) 672-7345.
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