Can I Keep My Possessions After Bankruptcy?

Are you feeling the weight of debt and other financial hardships?  Does it seem like you have no way out of the difficult situation you find yourself in?  Are you worried that bankruptcy is the only option you have left?  If you answered yes to any of these questions, then you are obviously feeling anxious and possibly overwhelmed with your current situation.  That can be a tough place to be and it can leave a person feeling like there is nowhere to turn.  However, in many cases, bankruptcy is the best option to get back on your feet and it doesn’t have to be financially crippling for the rest of your life. 

If you are considering bankruptcy,  you probably have a lot of questions.  You might be wondering what you can keep if you file for bankruptcy? This is a question we often hear at our bankruptcy law firm in Merrillville, IN.  We know that no one in the Northwest Indiana area wants to go through a bankruptcy and lose his or her possessions. So can you keep anything when you file for bankruptcy, and if so, what types of things do you get to keep and what do you have to give up? The answer depends on several factors, most notably, which kind of bankruptcy you choose to file: Chapter 7 or Chapter 13.

When you choose Chapter 7 bankruptcy you are essentially choosing a liquidation plan.  That means that in Indiana if you file a Chapter 7 a single homeowner can have up to $17,600 of equity in their residence and $35,200 of equity for married people.  In addition, an individual can have up to $9,350 of equity in personal property items such as vehicles, furniture, clothes, jewelry, etc.  You may keep all of your retirement and education accounts.

On the other hand, when you choose to file chapter 13 bankruptcy you can actually hold onto everything, as long as you can make the agreed upon payments. Chapter 13 allows you to create a new payment plan, which makes it possible for you to repay your debt at a monthly amount you can afford. That means if you behind in your house payment or your vehicle payment you can restructure them in your Chapter 13 plan and as long as you stay current with your payments then you shouldn’t have to worry about losing any of your assets or possessions.

The bankruptcy process can be a difficult thing to go through.  That is why you should seek the help of an experienced bankruptcy attorney if you find yourself in this situation.  The Whitten & Whitten can help you with all of your questions and concerns regarding bankruptcy and we help you make sound decisions based upon the details of your particular situation.  Please contact us in Merrillville for help today at 219-756-0555, or click here to contact us online.