What are bankruptcy assets?
Many Americans find themselves in the unfortunate situation of considering bankruptcy to help them with their debt problems. Among the most common questions about bankruptcy, most people want to know what will happen to their assets if they decide to go through with the process. To understand this, you must first understand the different forms of bankruptcy.
In chapter seven bankruptcy, your aim is to discharge, or wipe out, your debts completely. The downside, however, is that you may have to forfeit some of your assets in order to pay off at least part of your debt.
In contrast, chapter 13 bankruptcy creates a repayment plan which you follow for about 3 to 5 years. Chapter 13 doesn't get rid of your debt, but neither does it require you to liquidate your assets.
As you can see, chapter seven would be the choice for most people who are trying to get rid of their debt. However, chapter 13 can be useful in certain cases such as trying to get caught up with your mortgage payments.
The good news (or the bad news, depending on your perspective) is that most people who file for chapter seven bankruptcy don't have any assets that qualify for liquidation. If your financial situation has come to this point, then you probably don't have much to liquidate.
That brings us to a question of the two principle assets that most people are concerned with: their house and their car. In most states, there is a homestead exemption which helps to protect the family's a house from creditors. However, the specifics depend on many factors including the state in which you reside, as well as a value of your house and how much you owe.
As we stated above, there are many details to be worked out, which is why it is so important for you to find a bankruptcy lawyer to help you through the process. Otherwise, you're unlikely to be able to navigate all of the legal jargon and reach your goal of debt relief.
Still, you should continue to learn as much as possible about your options from articles like this one before you speak with your lawyer. This can help you become a more informed consumer and get through the process more efficiently.
In chapter seven bankruptcy, your aim is to discharge, or wipe out, your debts completely. The downside, however, is that you may have to forfeit some of your assets in order to pay off at least part of your debt.
In contrast, chapter 13 bankruptcy creates a repayment plan which you follow for about 3 to 5 years. Chapter 13 doesn't get rid of your debt, but neither does it require you to liquidate your assets.
As you can see, chapter seven would be the choice for most people who are trying to get rid of their debt. However, chapter 13 can be useful in certain cases such as trying to get caught up with your mortgage payments.
The good news (or the bad news, depending on your perspective) is that most people who file for chapter seven bankruptcy don't have any assets that qualify for liquidation. If your financial situation has come to this point, then you probably don't have much to liquidate.
That brings us to a question of the two principle assets that most people are concerned with: their house and their car. In most states, there is a homestead exemption which helps to protect the family's a house from creditors. However, the specifics depend on many factors including the state in which you reside, as well as a value of your house and how much you owe.
As we stated above, there are many details to be worked out, which is why it is so important for you to find a bankruptcy lawyer to help you through the process. Otherwise, you're unlikely to be able to navigate all of the legal jargon and reach your goal of debt relief.
Still, you should continue to learn as much as possible about your options from articles like this one before you speak with your lawyer. This can help you become a more informed consumer and get through the process more efficiently.
posted by Debt Consolidation Loan at
12:46 AM
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