What Property Can I Keep If I File Bankruptcy?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Mar 11, 2007 in General Bankruptcy Information
When you file for bankruptcy, you are discharged of all of your personal liability for your debts so you can get a fresh start.Â
In exchange for your discharge, in Chapter 7 bankruptcy you give up all of your assets; well not everything, but everything over the amount you can keep. So the question people have is, how much can I keep if I file for bankruptcy?
The answer to this question varies from state to state, and will also depend on how long someone has lived in the state that their bankruptcy case was filed in. Where someone lives and how long they have been there will determine what exemptions apply in the case. Exempt property is property that someone can keep after bankruptcy, and non-exempt property is what can be sold to pay the debts that are owed.Â
If someone has non-exempt property that they want to keep, they can file a Chapter 13 bankruptcy case. As long as they pay in the value of the non-exempt property, they can keep it.
In order to know what is exempt in your state and in your situation, you need to speak to a bankruptcy attorney who can tell you what laws apply.
Don’t rely on what is on the Internet because many web sites are wrong and/or contain outdated information. Some show only the major exemptions, but omit lesser known exemptions that are valuable in protecting assets.
To be sure what the exemptions of your state are and what exemptions apply to you, contact an attorney who is licensed to practice law in your state and who is experienced in bankruptcy law.Â
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