Declaring bankruptcy can be a scary thing. The best thing you can do to take some of the fear out of this situation is to have a better understanding of what will happen with this process. One of the things you should know is what you can keep with bankruptcy. There are a few things you will want to consider.
Depends on Where You Live
The first thing you should know is that there are different requirements in each state. This is because they different exemption limits for the items you own. As long as the items are less than the exemption amount, then you will be able to keep the item. With this, there are costs for selling the items which will come into play which could make the sale of your items less likely.
It Depends on the Type of Bankruptcy
There are different types of bankruptcy you can file. The most common for individuals or married couples are chapter 7 and chapter 13. Each of these has different requirements and rules. In general people who do not want to sell a home they have equity in will file chapter 13.
You Will Not be Left Stranded
It is also important to keep in mind that you will not have all your property taken away. In fact, the majority of your personal property will remain yours, especially if it has little or no value. Even with a home and car, you will still have something, even if it is not the same car you once had. This is because the purpose of bankruptcy is to help set you up for success when the process is over.
Get the Best Results
There are two essential things to do when you file for bankruptcy. One is to hire a bankruptcy lawyer. They will be able to give you the best advice. They can help you with filing the papers and be an invaluable asset throughout the process. Not only will they be able to advise you , but will also help you to get the best outcome from the process.
The other thing you need to remember is to truthful. Not disclosing all your property for fear of it being sold is illegal and can have severe criminal and civil repercussions. Any lie that is put into legal documents can be very detrimental to you. The most common thing to have happen is the case to be thrown out. When this happens, your credit will still be shot, the bankruptcy will stay on your credit and your items may have already been sold. This is why it pays to be honest.