Bankruptcy can affect the money, savings, and other assets you might have gained throughout your life. Most of us have assets that have value to us, both financial and sentimental: for example, family homes, heirlooms, and vehicles can all be important parts of our lives.
But what happens to these when you file for bankruptcy? Whether you’re paying it off or it’s been passed down, your home might be on the line, and you might wonder, “Can I keep my house if I file for bankruptcy?”
When you’re concerned about your home during your bankruptcy planning, speak to a bankruptcy attorney from Rowdy G. Williams Law Firm for help. We’ll help you build the best plan for your situation.
What Are Exempt Assets?
When you file for bankruptcy, most individuals will be choosing between Chapters 7 and 13 bankruptcy plans. The best plan for you will typically depend on your income, the assets you have, and whether you plan to pay your debts off all at once or over time.
If you choose Chapter 13 bankruptcy, you won’t have to worry about your home. This type of bankruptcy lets you reorganize your debts and pay them off over the next three to five years. That means that you don’t have to rely on your assets to make up your debts.
While Chapter 7 bankruptcy plans liquidate your assets and use them to pay off your debts, you may be able to keep your house. While this plan does liquidate your more valuable belongings, some assets are exempt. You’re often able to keep this asset, along with these other exempt assets:
- Insurance benefits
- Workers compensation
- Some vehicles
Your Bankruptcy Plan May Affect Your Home
Not all assets are exempt, however. For example, let’s say you have three houses. While you’ll likely be able to keep at least one of these homes, the others aren’t considered necessary for a reasonable standard of living and usually must be sold.
Your vehicles may work the same way. If you have several cars, you may argue that you’ll need one for getting to work, but you won’t be able to keep all the vehicles you own. These will instead be used to cover part of your debts.
As such, you should be able to keep your home. However, if you have multiple houses or other expensive items, like boats, musical instruments you collect, or more than one car, you may not keep all the property you once had. While Chapter 13 bankruptcy won’t take your assets at all, even Chapter 7 bankruptcy might not leave you without the home you need.
Speak to a Bankruptcy Attorney for Help
Our homes are a vital part of our lives, where we eat, sleep, and spend much of our time. Unfortunately, if you’ve gotten into debt, you may be worried about your home and whether you’ll be able to keep it. Fortunately, your lawyer can help you when you’re wondering if you can keep your house if you file for bankruptcy.
A bankruptcy lawyer can help you determine what plan is best for you and what you’ll be able to keep. At Rowdy G. Williams Law Firm, we want to give you the peace of mind you deserve, starting with a consultation with our bankruptcy attorneys. For more information about our services, call 1-812-232-7400 or complete the online form below.