Can I Keep My Property?
Can I Keep My Property in a Chapter 7
In Chapter 7 bankruptcy, the trustee liquidates your "nonexempt property" to pay your creditors off.
"Non-Exempt" Items that the debtor usually has to give up include:
- Expensive musical instruments, unless the debtor is a professional musician
- Coin or stamp collections, and other valuable items
- Family heirlooms of value
- Cash, bank accounts, stocks, bonds, and other investments
- A second car or truck
- A second or vacation home
"Exempt" property (items that a debtor may usually keep) can include:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value.
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security, and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Can I Keep My Property in a Chapter 13
The bankruptcy trustee in a Chapter 13 allows you to keep all of your property including your nonexempt assets. In exchange for keeping all of your property, you pay back all or a portion of your debts through a repayment plan, usually at a much lower cost to you.
These issues can be complex. For answers to your questions, give us a call to schedule your free in-person consultation. 844-260-8570
