What would you like to do?

Can you file bankruptcy if you own property?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Can you file bankruptcy if you own property?
A basic, rough primer:
BK is always done under FEDERAL Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better).

In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way.

The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified).

Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK).

Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that sdebt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything).

The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything.

There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not rust people with bankruptcies in their past, especially in the last few years. Many more things.

Not disclosing all items is frequently trie and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). Many seem to fall into the trap thinking that they can trick or change the system. It simply ain't going to happen.The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones).

The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too.

State Laws that Affect Bankruptcy

Each of the fifty states has its own bankruptcy laws that work along with the United States Bankruptcy Code. State laws provide various protections for the bankrupt in the form of exemptions. For example Massachusetts exempts $500,000 for the primary residence. Nevada exempts up to $15,000 for a vehicle with no limit if equipped for the disabled and $550,000 for the primary residence. Wyoming provides only $10,000 in exemptions for real property. You can check the exemptions in your state at the related link provided below.
1 person found this useful
Thanks for the feedback!

Were you a fan of the original Star Trek?

View Full Interview

What can you file in bankruptcy?

Typically when you file bankruptcy, you have to disclose all the  assets that you have. And so everything you own can be susceptible  to review by a bankruptcy court.  
Who can file a lien on property after a bankruptcy discharge?

Who can file a lien on property after a bankruptcy discharge?

No one. Liens can only arise on valid debts. They can be statutory (such as a mechanics lien) or judicial ( a judgment lien). However, bankruptcy discharges the underlying deb

If you want to file bankruptcy on your own how do you go about getting the forms to file?

You can usually pick up a set form the local bankruptcy court. You can also purchase a set and a paper goods store like Staples or office Depot. You can also purchase them on

Can you file bankruptcy if you own a house?

  Yes. There are multiple forms of bankruptcy, such as Chapter 11, 9, etc. Some forms of bankruptcy simply set up a payment plan with the creditors, others forgive the d

When did you file bankruptcy?

The first step in understanding financial distress is realizing  that you are in financial trouble and need help. Contact a  bankruptcy attorney in your area for a free init
What does the bankruptcy lawyer do after you file for bankruptcy?

What does the bankruptcy lawyer do after you file for bankruptcy?

It depends on what Chapter you file under and how complicated your case is. Your lawyer will definitely go to the meeting of creditors with you, where you sit before the tru

Can you file bankruptcy while owning a house and keep the house?

Yes. Whether or not the property can be retained depends upon the circumstances. The first being if the mortgage agreement is still valid and the property has not been subject
Can you file bankruptcy and own a home?

Can you file bankruptcy and own a home?

You can but three things can happen depending on which type of bankruptcy you file. 1. You can either include the home in the bankruptcy and move out. 2. You can declare the h

What happens to your personal property when filing bankruptcy?

  When you file bankruptcy, you are required to fill out quite a few bankruptcy papers. Among these are Schedule C, which is a form where you list the property you are cla

When to file bankruptcy?

Bankruptcy should always be the very last step. Many people take the effects of bankruptcy fairly lightly. Basically, you must be so far in debt that there is no other option.

Should you file bankruptcy on an injury accident law suit to avoid a lien on your property?

  Answer   If you have adequate insurance to cover the claim, you should demand that your insurance company settle the lawsuit withing your policy limits in exchange

Can you file bankruptcy on multiple properties?

  You file bankruptcy...not the property. You do not file it on a debt, or an anything. You do not say, that thing that isn't worth anything is bankrupt and I want the c
Will a bankruptcy trustee take rental income on exempt property after a chapter 7 is filed?

Will a bankruptcy trustee take rental income on exempt property after a chapter 7 is filed?

If the property was claimed as exempt the trustee has 60 days to either exempt or reject the contract. If nothing is done then the contract is automatically rejected and the t
What happens if three people inherited property and one of three files bankruptcy?

What happens if three people inherited property and one of three files bankruptcy?

The bankrupt's property interests can become part of the bankruptcy estate and ultimately disposed of by the court. On motion, indivisible interests might be excluded by the B