Times are Tough. And if you're considering filing for bankruptcy, and are wondering what assets can be taken in bankruptcy? This hub will provide you with useful information and guidance. Know what you stand to keep and what you stand to lose is crucial. Laws do vary from state to state; therefore, it is advisable for you to consult a certified bankruptcy attorney who specializes in the laws of your state. However, this hub will provide with a general idea as to what items you Can and Cannot keep in a Bankruptcy Filing.

This hub will address Personal Bankruptcy

There are 2 Types of Personal Bankruptcy

Chapter 7 – Otherwise known as “liquidation” is when the majority of your assets are liquidated to pay off your creditors. Also In this situation, your unsecured debts i.e. debt not secured by any property or liens, are wiped away totally. Some examples are things like credit card bills, personal loans, utility bills, medical bills and so forth. This could be the solution for you to gain a fresh start if your debt has become too overwhelming.

Chapter 13 – Otherwise known as “Reorganization”. In this situation your payments and overall debt are restructured into something that you can handle more comfortably. Your Bankruptcy Attorney's job is to work to come to terms with your creditors - in order to structure a new reduced payment structure on your behalf. This new repayment plan tyically will span an average of 3- 5 years. Chapter 13 bankruptcy has helped many who were on the verge of losing their homes or having their automobile repossessed.

In both cases, it will stop your creditors from harassing you. An Official Bankruptcy makes all the noise Stop! by a court of law. Whatever was agreed upon In the bankruptcy filing is how it will be. Creditors can no longer harass you anymore IF you abide by your bankruptcy
agreement.

Your Home

This is a fear that many people have - losing their home. In a Chapter 7 bankruptcy, usually you can keep your home IF you are current on payments, and can agree and can afford to continue to pay on your mortgage. However if you're seriously behind, chances are great that may face losing your home. However, with a Chapter 13 consolidation bankruptcy, you are generally able to keep your home – and will be able to restructure your payments into something that fits your budget more comfortably.

Your Car

Same goes with your car. If you’ve been falling behind on your payments, and planning on filing Chapter 7 - then you will likely lose your car ...especially if it's a Luxury Car. Now if you opt for chapter 13, you can possibly restructure a more stress-free payment plan in order to keep your automobile. But even if you file for a Chapter 13 -- You must agree and abide 100% by the new restructured payment plan -- or you will still risk losing your automobile eventually.

Your Personal Possessions

Typically in a Chapter 7, unsecured possessions (those not secured by liens or any item of property) that have significant cash value will be liquidated in order to pay off your creditors. Under Chapter 13 law, you are generally allowed to keep all your belongings -- as long as you agree to continue paying your creditors under your new reorganized payment plan.

Again, this hub has been provided as general information only. Bankruptcy laws can vary from state to state. It's best to seek professional legal consultation to find out if bankruptcy is the most strategic move for you.

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