What Can I Keep After Bankruptcy?
Most people are reluctant to declare bankruptcy for fear of losing their home, their car, or their personal possessions. In reality, you may be able to keep most of your things, depending on the kind of bankruptcy your file for and the specifics of your case. And, while home foreclosure is a worry for those filing for bankruptcy, foreclosures are often more expensive for banks than modifying a loan or refinancing a house altogether.
At Kingcade Garcia McMaken, Attorneys at Law, we prepare clients for life before, during, and after bankruptcy by explaining what they can keep, what they will likely have to sell, and what they may be able to keep by working with creditors. In many cases, whether you file under Chapter 7 or Chapter 13 will determine what you can keep after bankruptcy.
If you are considering filing for bankruptcy but are unsure of the consequences, contact Kingcade Garcia McMaken today to schedule an appointment and get the information you need to regain your financial footing.
Chapter 7 Bankruptcy
Under the terms of Chapter 7 bankruptcy, most of your unsecured debt should be wiped out. However, the court may sell some of your personal items and property in order to pay creditors all or a portion of what you owe them. In general, non-essential luxury items like plasma or LCD TVs, high-end stereo equipment, a boat, expensive clothes or jewelry, or certain kinds of appliances could be sold. Workers’ compensation benefits, Social Security disability income, assets from a prepaid college fund, and retirement funds are usually exempt. If you can continue making payments on your car, you will likely be able to keep it.
Chapter 13 Bankruptcy
Since Chapter 13 involves a restructuring of your debt, it is frequently used to allow you to keep your home, cars, and personal property under its terms. Under Chapter 13, a trustee is appointed by the court after you file. You will be required to repay a percentage of what you owe over a 3 or 5 year period. As such, any debt owed on credit cards or loans will be incorporated into the terms of your repayment plan. The court will not need to sell your property since the debt against it will be paid down according to the terms of your Chapter 13 repayment plan. Additionally, you should be able to keep your home since Florida provides a generous homestead exemption.
Questions? Contact Us Today
Contrary to what many believe, the purpose of bankruptcy is not to make people destitute; rather, bankruptcy is intended to give people a second chance, a fresh start. If you have questions regarding how bankruptcy impacts your assets and personal property, contact the bankruptcy attorneys at Kingcade Garcia McMaken today to schedule a confidential consultation.