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Can I keep my home, car and other assets if I file for bankruptcy?

In a Chapter 13 case, the Debtor is able to keep all of their assets as long as their repayment plan conforms with the bankruptcy guidelines. A debtor must continue to make the post-petition payments, if any, on their house and car, as one of the requirements to keeping these assets.It is important to speak with a bankruptcy attorney before making this determination.

Since a Chapter 7 Bankruptcy is often referred to as a “liquidation bankruptcy”, a court appointed trustee can sell any of the Debtor’s non-exempt assets and then apply the proceeds of the sale to pay your creditors. In many cases, however, there may be little to no equity in these assets after applying the exemptions, therefore, there is no liquidation and the Debtor is allowed to keep their assets. But its important to speak with a bankruptcy attorney to determine whether this is in fact your situation.

 

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