You’re deep in debt and considering filing for bankruptcy. However, you’re afraid that you’re going to lose everything you own and end up with nothing if you go through with the process.
If you learn about bankruptcy and how it works, you can make a clearer decision and decide whether or not it’s right for you.
Do You Lose Everything in Bankruptcy?
Will you lose your car, home, and other property if you file for bankruptcy? In most cases, the answer is no. Typically, the court will not take anything of yours.
Once you file for bankruptcy, the court is going to appoint a trustee to look over your assets and determine if it’d be a good idea to sell them to pay off creditors. But if everything is filed in the right way, the trustee will not sell your assets. You can claim as exempt certain assets when you file. Usually, your home, car, and other assets will be exempt. Keep in mind if you owe money against a home, car, or another type of asset, then you will have to pay down those loans even after filing for bankruptcy.
What About Other Assets?
So your car and home are likely to be protected. But what about other assets? If you file Chapter 13 bankruptcy, in which you pay creditors over three to five years, then you can protect your other assets as well. The bankruptcy court will protect you while you are reorganizing your finances.
Contacting Richard P. Arthur for Bankruptcy Help
Richard P. Arthur, Attorney at Law, can help you file for bankruptcy and figure out how to protect your assets. You can call 937-254-3738 for a consultation. He has nearly three decades of experience advocating for families in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.