What Assets Do You Get To Keep In A Chapter 7 Bankruptcy?
This is one question just about everyone wants to know the answer to. What assets can you keep in a bankruptcy, as well as what assets do you have to turn in or sell off during a bankruptcy? The answer isn't exactly clear, because every single person that files has a different financial situation. Someone else may have a lot of assets, whereas you may only have a house and a car. Sometimes people don't want to file for bankruptcy because of fear that they may lose everything, but that isn't always the case. Read on for further information about assets and bankruptcy.
Do You Have To Report All Of Your Assets?
As part of the bankruptcy rules, you do have to report all of your assets. This doesn't necessarily mean all of the things you listed will have to be sold or turned back into the bank. Some of those assets can be kept, especially if you have the means to keep them. Although there are some things you may have to turn back in. Things that aren't necessary to daily life such as ATV's or expensive jewelry you have loans out on or even electronics you just recently purchased with a credit card. You have to report everything, as well as what you paid for them and if there are loans outstanding on them.
Do You Have To Turn In All Of Your Assets?
Again, this is going to depend on your financial situation and how much you have in assets. If you have a lot of assets that are worth a lot of money and you can repay your debts with these assets, it's a good possibility. If you have a lot of loans outstanding and some of the things you purchased are still worth a lot of money, these items may have to be turned back into the bank to help pay back your debt. It depends on the number of assets you have and what they are worth.
Will You Lose Your House?
Bankruptcy courts don't want to see people homeless and banks don't always want their houses back, because it's more work for them to have to keep up until it can be sold. Most financial institutions will work with those in need and who are filing for bankruptcy to work on getting their house payment caught up. If however, you aren't able to keep up with the payments and are not able to afford your mortgage even after you file for bankruptcy, your home may have to be given back to the bank.
If you aren't sure about what assets will need to be sold off when filing for bankruptcy, talk to a bankruptcy attorney about this information and what all the bankruptcy will entail. You should come out at the end of your bankruptcy better off financially than when you started.
Reach out to a chapter 7 bankruptcy attorney today to learn more.
