As is often the case in legal matters, whether you will lose your property in a Chapter 7 bankruptcy depends on a number of factors. That said, it is helpful to be aware of the fact that most Chapter 7 cases are “zero-asset” bankruptcies, which means that debtors don’t have to give up anything in order to eliminate their debts.
The best way to determine whether you can benefit from bankruptcy is to discuss your situation with an attorney who is familiar with bankruptcy laws in your state. Call us today to learn more about how bankruptcy could help you.
In Chapter 7 bankruptcy, a debtor’s non-exempt assets are sold in order to pay creditors. Debts that are left over are discharged, provided they are not non-dischargeable debts like past-due alimony or child support. Fortunately for people who file for bankruptcy, there are ample exemptions available for various categories of assets, including the equity in your home, equity in your vehicle, work tools, personal property, jewelry, art collections, and more.
If you are like many people considering filing for bankruptcy, whether you can stay in your home is the most pressing question you have. In most cases, if your equity in your home is lower than or equal to the exemption available to you, you can stay in your home so long as you stay on top of your mortgage payments. If you have non-exempt equity in your home, however, the bankruptcy trustee may sell it and use the proceeds to pay back your creditors.
At Harnage Law, PLLC, we are dedicated to helping people find financial freedom through Chapter 7 bankruptcy. To schedule a consultation with an attorney, contact us online or call 321.549.7886