Boca Raton Bankruptcy Attorney
Property Loss and Bankruptcy
Considering bankruptcy to manage your debt should be a carefully thought out decision. It is critical to be familiar with what losses you may be susceptible to if you choose this route. It is also important to keep things in perspective and understand that, depending on your situation, you may have to forfeit some of your property as part of your debt repayment plan.
Chapter 13
If you file for Chapter 13 bankruptcy, you will not have to lose any property. The reason for this is because in Chapter 13 you fund your repayment plan through your income. Your property and other assets remain untouched.
Chapter 7
The situation changes when filing for Chapter 7 bankruptcy. In this case, you select property that you are eligible to keep from either a list of state exemptions or exemptions provided in the federal Bankruptcy Code. Regardless of the state, the following are typically items that you are allowed to keep:
- Equity in your home
- Insurance
- Retirement plans
- Most personal property
- Tools used on your job
- Public benefits
- Wages
In these uncertain economic times, it is important to be aware of your options should you find yourself facing a financial crisis. If you or someone you know has become overwhelmed by debt and creditors’ calls, bankruptcy could help to get you back on your feet.
Call a South Florida Bankruptcy Lawyer Today
Contact the Boca Raton bankruptcy lawyers of Eric N. Klein and Associates, P.A. at 561.353.2800 for an overview of your current financial situation. We have the experience and knowledge to help you regain control of your debt.
