What can you keep if you file bankrupt?

Answer 1

Yes, if you file a Chapter 13, usually you can retain all your property, although you will have to reaffirm your agreements that relate to a mortgage(s) and auto loan(s). No, if you file a Chapter 8, some assets personal and real will have to be forfeited.

Answer 2

It is a myth that you will lose everything if you file for bankruptcy. While the bank is allowed-under Chapter 7-to liquidate assets, there are number of exemptions including tools of the trad exemptions, primary vehicle, and others.

Answer 3

Property exemptions vary from state to state however as a general rule, you are permitted a certain amount of equity which you can protect (cover with your exemption) and the trustee won't force a sale if there are no proceeds, even if you have some unprotected (ex:10,000) since it costs money to sell a home it would have to be worthwhile for the court. . if you have a lot of non exempt equity then they may (sell) to satisfy creditors. you can generally keep your home if-
You are current on your mortgage
You do not have much/any non exempt (or "protected")equity (amount over all liens)
Even though mortgage is actually discharged, they still have the right to forclose if you are in default (behind)
Check exemptions in your state and if you use a doc prep service to save money AT THE VERY LEAST have an attorney check them over before you file if youi are a homeowner. you cannot cancel a Chapter 7 if you boo boo on the paperwork.
Other exemptions are pretty much all personal items (clothes, etc) however if it's over 500.00 must list it also any extra vehicles-since you usually only get exemption for one. other assets like boats may be protected with a wildcard if your state has them. All bank accounts must be disclosed. Remember you caqn only file 7 if you are broke, many states have a "means test" to see how much you earn. Businesses usually have to be sold but most get around that with a temp closure and name change-Good luck

Answer 4

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.

However, certain assets can not be touched because they are considered essential for either your well-being or your means of making a living. A car sometimes can not be touched because it is considered vital to your ability to make a living.

However, different states have different laws on the treatment of assets. I would highly recommend you check the laws in your state.

Answer 5

Don't do it! A BK is ALWAYS a last resort. There are usually many other options that won't haunt you the rest of your life. Go to www.daveramsey.com. It's helped me.

Answer 6

It varies from state to state.