Bankruptcy Q & A

Will I Lose Anything When I File for Bankruptcy?

When clients come to us about bankruptcy, one of the first questions they ask is, "Will I lose anything?" If you file for bankruptcy, whether it's Chapter 7 or Chapter 13, the majority of your debts will be discharged, but that doesn't mean you'll lose all of your assets. If you meet with an attorney as soon as you begin filing for bankruptcy, they can show you ways to keep certain valuable assets, but you must act quickly. Though you will keep certain assets, your credit will definitely take a hit, but can be rebuilt with the assistance of one of our bankruptcy attorneys. You'll likely find it a lot easier to focus on rebuilding credit when you're not feeling crushed under an enormous amount of debt. Contact one of our bankruptcy lawyers today to find out how we can help.

What Can I Keep After the Process is Complete?

When you file for Chapter 7 bankruptcy your debt is discharged through the liquidation of your assets, but many people don't understand that many of those assets are exempt from liquidation, including your home and your vehicle.

Retaining Your Home

If you can prove you've paid your mortgage payments when they came due, it is extremely likely you'll retain your home when filing for Chapter 7 bankruptcy. If the evidence shows you've fallen behind on payments or paid late on several occasions, it may be impossible to retain your home. If this situation arises, a representative will inform you of the news before you file for bankruptcy. If you file for Chapter 13 bankruptcy, you may keep your home even if you're behind on payments if you can prove you will keep up on payments going forward. For more information on keeping your home when filing for bankruptcy, schedule a meeting with one of our bankruptcy attorneys.

Retaining Your Vehicle

If you're filing for Chapter 7 bankruptcy you will likely keep your car as long if you've kept up to date on the payments and it's not your household's second vehicle. With Chapter 13 bankruptcy, you will likely keep your vehicle regardless of how far behind you are on payments.

For help navigating the complexity of bankruptcy law, including finding out which assets will be retained and lost, contact Bizar & Doyle today.