Filing for bankruptcy can be intimidating. It’s even more stressful when you consider that you could lose some of the property you own because of it. Bankruptcy doesn’t mean you lose your assets. It can help you protect your rights and rebuild your credit. A professional bankruptcy attorney can help you to preserve more of your assets.
You might be concerned about your property being lost in bankruptcy. Learn more about the different types of bankruptcy.
Chapter 13
You can keep all property that you own under Chapter 13 bankruptcy filings, regardless of whether it is exempted from liquidation by your creditors. This will allow you to pay down a portion or all of your debts over time if you agree to a 3- to a 5-year repayment plan. When you finish your repayment plan, you will have all of your remaining dischargeable debts paid off and you can keep the assets you have outlined in your protected items.
Chapter 7
You won’t have to repay any dischargeable debts if you file under Chapter 7. You might need to surrender items that are considered non-exempt in rare cases. Certain exemptions to Chapter 7 bankruptcy allow you to keep funds in retirement accounts, tools for your business, small vehicles, and equity in your home.
Filing for bankruptcy can help you protect your income, assets, and prevent you from being evicted. Your vehicle could be repossessed, and your home could be closed. You could also lose your utilities, garnish your wages, and have ongoing collection proceedings against your accounts.
Contact our team today to find out more about filing bankruptcy and what property you could lose.
This post was written by Trey Wright, a highly sought-after bankruptcy lawyer in South Georgia! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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