frequently write about all the advantages that filing for bankruptcy has to offer. Filing for Chapter 7, Chapter 11 or Chapter 13 protections can help to halt creditor harassment, discharge or restructure debt and help you regain a stable financial foundation upon which to move forward. However, there are some limited drawbacks to filing for bankruptcy. For example, bankruptcy will cause a temporary dip in your credit rating and may result in the loss of some of your property.
Is Property Lost When Filing for Bankruptcy?
As we have noted on our site, the majority of our bankruptcy clients do not lose any of their property when we help them file for bankruptcy. We are well-versed in the laws governing bankruptcy exemptions and we are skilled at protecting assets that may not be explicitly covered by these laws.
However, sometimes certain assets are forfeited during the bankruptcy process. But, the law generally respects the right of individuals to keep the property that is most important to them. For example, you will not generally be required to forfeit your car in bankruptcy. If you are married, you may keep two motor vehicles. You may also generally retain the right to keep your home, any retirement accounts in your name, sentimental personal possessions, furnishings and a certain amount of valuables.
As you can see, filing for bankruptcy does not generally require you to forfeit any property that will impact your ability to live comfortably, travel to work or school, retain your sentimental property or retire with means of support.
To get help filing for bankruptcy contact our bankruptcy attorneys today.