Bankruptcy and Your Savings
People who must declare bankruptcy to stabilize their debts may have concerns about what will happen to their hard earned savings. Depending on the type of bankruptcy a person files, money in savings accounts can either be retained or liquidated.
Knowing more about the variety of bankruptcy options and the effects of each can help you make the best decision for you and your family. If you are thinking about declaring bankruptcy but are concerned about losing your savings, contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A., today at 561-353-2800.
Bankruptcy Chapters and Savings Accounts
For consumers, there are two kinds of bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy requires individuals to liquidate their assets in order to pay off their debts. Chapter 13 allows consumers to restructure their debts with their creditors.
Individuals who declare Chapter 7 bankruptcy will:
- Identify their property as exempt or non-exempt
- Have many of their debts discharged
- Lose the money in their savings accounts
Individuals who declare Chapter 13 bankruptcy will:
- Work out repayment plans with creditors
- Halt foreclosures and repossessions
- Keep the money in their savings accounts
While declaring Chapter 13 bankruptcy seems like the obvious choice, this is not true for all people.
Contact Us
Bankruptcy may claim your savings or allow you to keep them. If you are headed toward bankruptcy and want to know more about how your savings factor into bankruptcy, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800 today.
