What Can I Keep After Bankruptcy?
What you can keep after filing for bankruptcy depends, in part, on whether you file under Chapter 7 or Chapter 13. Additionally, there are a number of exemptions that must be taken into consideration which may help protect more of your property and your home. If you are facing foreclosure, whether or not you can keep your house will depend on whether you can continue making monthly mortgage payments to bring your mortgage current (if you are behind), or whether you are able to obtain a loan modification. However, filing for bankruptcy initiates an automatic stay of relief, requiring creditors to stop collection actions and banks to halt foreclosure proceedings.
If you're considering filing for bankruptcy but are concerned about losing your home or other property, contact bankruptcy lawyers at the Kramer Law Firm today to schedule an appointment and discuss ways we can help you.
What You can Keep after Filing for Chapter 7 Bankruptcy
If you qualify for Chapter 7 bankruptcy, your unsecured debt will be wiped clean. Unsecured debt includes debt on credit cards, certain kinds of loans, and medical bills. However, under Chapter 7, the court can sell off a portion of your property in order to pay back some of your debt to your creditors. In general, luxury items that are not considered essential are eligible for liquidation. Here, expensive appliances, plasma TVs, a luxury car, boat, or other similar items may be sold. If you're able to continue making payments on your car or home you should be able to keep both. Social Security disability income, assets from a prepaid college fund, retirement accounts, and workers' compensation benefits are not eligible for liquidation and cannot be seized by the bankruptcy court.
What You can Keep after Filing for Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy requires you to prepare and propose a debt repayment plan. In general, you will be required to pay back 80-100% of what you owe over a 3 to 5 year period. Since Chapter 13 involves reorganizing your debt, it's easier to keep your home, car, and other kinds of property by incorporating any debt on them into your repayment plan. While you can't reduce your monthly mortgage or car loan payments, you can include past due amounts in your plan. Additionally, reorganizing debt on credit cards should provide you with additional disposable monthly income, making it easier to pay your mortgage or car loan.
Bankruptcy Questions? Contact Altamonte Springs Bankruptcy Attorneys
If debt collectors are calling you at home or your bank is threatening to foreclose on your home, contact bankruptcy attorneys at the Kramer Law Firm today. Once you file for bankruptcy, debt collectors are required to stop calling you and halt all collection actions against you. Recover your financial footing and peace of mind - call the Kramer Law Firm today.
