What Can I Keep in Bankruptcy?

One of the primary reasons people hesitate to seek bankruptcy protection is they fear losing everything. There is a lot of misinformation out there leading people to believe it is not possible to keep a home, a car or other personal possessions in bankruptcy. The truth is, with the help of a skilled bankruptcy lawyer, many filers are able to keep the items that are most important to them.

At Minion & Sherman, we are ready to help you understand what exactly you are facing. Every person's financial situation is unique, so we always take the time to sit down with each client to analyze his or her finances in depth. We provide honest opinions about what you will be able to keep and what you will need to sell. Our New Jersey bankruptcy attorneys have more than 40 years of combined experience, so you can rely on our ability to guide you through the process.

What Can You Keep in Chapter 7 Bankruptcy?

When you file Chapter 7 bankruptcy, your unsecured debts are eliminated. During the process, the court typically orders certain assets to be sold off in order to pay creditors. Generally, nonessential items like televisions, expensive stereo equipment, boats and jewelry are subject to sale. Property that you can keep includes workers' compensation benefits, Social Security Disability benefits and retirement funds. You can also keep your car if you are able to make the payments.

What Can You Keep in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is debt reorganization plan. It does not require liquidation of as many assets as Chapter 7. Most people are able to retain the home, car and most personal property in Chapter 13. The reason you get to keep so much property is that the court sets you up with a payment plan, which you make payments on for three to five years. Your payments are applied to your debts, so you are paying them down during bankruptcy.

Whether you file for Chapter 7 or Chapter 13, remember that bankruptcy law is not designed to punish people. It is designed to give people a second chance.

Contact Our Fir to Learn More

Are you wondering, "What can I keep in bankruptcy?" To set up a free consultation to begin talking about bankruptcy and get an idea of what property you might be able to keep, please call Minion & Sherman at 973-559-5791 or toll free 866-915-1839. You can also contact our West Caldwell law firm online. Your initial consultation is free.

We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.