What property can you keep in a bankruptcy?
In a bankruptcy, most people are able to keep all of their property. There is a perception that all property will be sold to pay off creditors, but for most people, all or most of their property will be exempt.
- Each of the states where we help clients – Alabama, Mississippi and Tennessee – allows those who have filed for bankruptcy to keep a certain amount of equity in their homes and vehicles. The amount varies by state.
- You can also keep household goods, personal belongings and tools of the trade up to a certain amount defined by each state.
- Retirement accounts are exempt from bankruptcy.
What does equity mean? You may have a $50,000 home, but you owe $40,000. That means you have $10,000 in equity. Many homes have no equity because the value of the home is less than the amount owed. Your car, furniture and personal belongings are worth less that you paid for them – usually far less.
If you owe money on a mortgage or car loan, you are still obligated to pay those loans after bankruptcy or lose that property.
Call 1-877-ONE-DEBT and find out what property you can keep after bankruptcy.
Most of the people we have helped at Bond & Botes over the past 20 years have been able to keep all their property after bankruptcy. The only thing they lose is, in Chapter 7, all their unsecured debts and, in Chapter 13, the anxiety of having bills beyond their ability to pay.
Come in for a FREE initial consultation and learn more about bankruptcy and debt relief.