Can I keep any of my assets if I file for bankruptcy?

The answer to this question depends on the type of bankruptcy you file and the exemption laws in your state. In general, bankruptcy law provides for certain exemptions that allow debtors to keep certain assets. These exemptions vary by state and may include things like your home, car, personal property, and retirement accounts.

In Chapter 7 bankruptcy, which is also known as liquidation bankruptcy, non-exempt assets may be sold to pay off creditors. However, exemptions can help protect certain assets from being sold. If all of your assets are exempt or have little value, you may be able to keep all of your assets.

In Chapter 13 bankruptcy, which is also known as reorganization bankruptcy, you do not need to sell your assets to pay off creditors. Instead, you develop a repayment plan over three to five years to pay off your debts.

It’s important to consult with a bankruptcy attorney to understand the specific exemption laws in your state and to determine how they may apply to your assets. The attorney can help you determine which assets are exempt and which are not, and advise you on how to protect your assets during the bankruptcy process.