Can I Keep My Assets When Filing Bankruptcy?
March 27th, 2015|
Protecting Your Property During Bankruptcy
One of the most frequently asked questions about bankruptcy that our attorneys at Fleschner, Stark, Tanoos & Newlin get is, “Will I lose my property if I file for bankruptcy?” The answer is no, not necessarily, but you need to be informed about the best ways to protect your assets when going through the bankruptcy process.
Filing for Chapter 13 Bankruptcy
One of the best ways to ensure you keep your property while filing bankruptcy is choosing to file Chapter 13 bankruptcy as opposed to filing Chapter 7 bankruptcy. A Chapter 7 filing will require you to liquidate your assets in order to pay off your debts, whereas a filing under Chapter 13 will allow you to establish a payment plan to repay your creditors.
It’s important to know that there are strict rules and requirements that must be met in order to file Chapter 13 bankruptcy and selecting the proper exemptions can be crucial to staying within these requirements.
Bankruptcy exemptions protect certain pieces of your property from being used to pay off your debts. The law prohibits items like your vehicle, your primary home, or tools of your trade from being taken through the bankruptcy process.
These exemptions are also used to determine the final dollar amount you owe through bankruptcy, regardless of if you file under Chapter 7 or Chapter 13.
Getting The Help You Need
Determining what assets can be protected and which cannot is a complex process and may be easier with the assistance of a legal representative. At Fleschner, Stark, Tanoos & Newlin, we have a clear understanding of bankruptcy law and can help you determine what the best course to financial freedom is for you. Call our Terre Haute bankruptcy lawyers today to discuss your case at (800) 477-7315.