What to Keep if You File Bankruptcy

Bankruptcy laws vary from state to state, as does what can be kept and under what conditions. One thing in common is that even if you file Chapter 7 bankruptcy, you will get to keep your home and your car under certain conditions.

Property You Can Keep

You will always get to keep your Social Security or V.A. pension, unemployment compensation and welfare income.

Car and Home

Even under Chapter 7, you may keep your car and your home, but these debts are not discharged, so you must continue paying for them if you want to keep them.

Household Goods

In many instances, household goods are taken as security on a loan. Most often, in cases of bankruptcy, you can keep your household goods and not have to make another payment on that loan.

Ownership After Bankruptcy

Many people think that after bankruptcy, they cannot own anything. You can own the exempt property plus anything that you obtain after bankruptcy. Some companies thrive on selling or lending to the bankrupt, since it will be 8 years before you can file again.

Exceptions to Ownership

Inheritances, insurance proceeds and property settlement received within 180 days of filing bankruptcy may be forfeit to the bankruptcy court.