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Keeping your property, even in bankruptcy

One of the most common concerns voiced by individuals who are considering bankruptcy is over losing important personal property. While you may have to relinquish certain assets if you file for Chapter 7, a popular choice for Washington D.C.-area bankruptcy applicants, this does not mean that you will have to give up everything.

You may be surprised to learn that, in many cases, people who file for Chapter 7 bankruptcy protection are able to keep much, if not most, of their personal property. While Chapter 7 also goes by the name of liquidation bankruptcy, it does not mean that you will lose everything just to get out of debt.

What can I keep during bankruptcy?

If you file for bankruptcy, usually it is because you are overwhelmed by debt and have little hope of escaping this frustrating cycle on your own. If you get approval for Chapter 7, certain types of property will be exempt from liquidation, which means that you get to keep it. Most of the time, Chapter 7 applicants can keep the following types of property:

  • Vehicles worth up to a certain dollar amount
  • Household appliances
  • Necessary furniture
  • Necessary clothing
  • Tools of the trade and stuff needed for work
  • Jewelry, valued up to a certain amount
  • Portion of equity in your home
  • Pension
  • Any money awarded from a personal injury claim
  • Public benefits

Just because you file for bankruptcy does not mean that you must give up what is most important to you. However, there are certain types of property that are not exempt. This includes the following:

  • Second homes or vacation homes
  • Second vehicles
  • Family heirlooms
  • Valuable collections, such as stamps
  • Cash, bank accounts and savings accounts
  • Stocks, bonds and other types of investments

Bankruptcy is not an easy choice, and you will find it beneficial to seek a full understanding of your property rights and your right to keep certain assets.

Why choose bankruptcy?

Filing for bankruptcy may not be your first choice, but it could be a reasonable and beneficial step for you to take in order to secure a better and stronger financial future. Chapter 7 bankruptcy may allow you to discharge certain debts, get rid of harassment from creditors and obtain a fresh financial start.

You can learn about the benefits of bankruptcy and find out how you can seek a better future for yourself and your family by reaching out to an experienced attorney. After a complete case evaluation, you can make a positive decision in light of a better tomorrow.

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