What Will You Lose If You File Bankruptcy?

It is impossible to determine exactly what you will be able to keep after filing for bankruptcy because this is mainly dependent on the circumstances of each individual case. Consult a lawyer if you have specific concerns.

Considerations

Which chapter of bankruptcy you file will play a pivotal role in determining, what property you will be able to keep. People filing for Chapter 13 will often be able to keep all of their property, but people filing for Chapter 7 may lose significant portions of their property.

Exemptions

Bankruptcy exemptions allow individuals and organizations to keep certain property, even if debts exceed their total net worth. These exemptions vary from state to state; some states use federal exemption levels and some adopt their own.

Homestead

All states have some exemption for the debtor's primary residence. The federal homestead exemption is $20,200, but this number is significantly higher in many states.

Vehicles

Exemptions for motor vehicles are typically low. The federal exemption is $3,225. If your car is sold during a bankruptcy, you are still entitled to the exemption amount.

Wildcards

State and federal bankruptcy laws may also include wildcard exemptions. Wildcards allow individuals to choose which type of property to which they may apply their wildcard exemptions.

References

• Property Exemptions