What happens to my properties when I file for bankruptcy?

What properties can I keep?

It depends largely on which form of bankruptcy you choose.

Chapter 7 bankruptcy and your properties

Chapter 7 is a liquidation bankruptcy and used to get rid of the debt that you cannot afford. Under this bankruptcy, your income and expenses will be evaluated to ensure that you don’t have monthly income left over that you can pay your creditors back.

To qualify for this Chapter you must meet the disposable income requirements and the means test per the IRS guidelines. Under 11 USC section 101(10)A your last 6 months of pay/income will be evaluated to make sure you are eligible for this benefit.

In South Carolina for example, the median income is $3887 Monthly for a household of one. For a household of two it is $5036. These figures are changed periodically so it’s always best to speak with an attorney before trying to figure out on your own. The assets that you have in your bankruptcy will be evaluated and sold, if necessary, to pay back your creditors. In most bankruptcy cases, however, a no asset report is filed and the trustee does not sell your property.

Our office will be able to work with individuals on a case by case basis to inform you whether a Chapter 7 bankruptcy or a Chapter 13 bankruptcy is appropriate for you.

Chapter 13 bankruptcy and your properties

A Chapter 13 bankruptcy is an organization bankruptcy and will assists debtors in organizing their debts. You should be able to keep your property in a Chapter 13 bankruptcy, however, to answer the question ” what happens to my properties”, you will need to speak directly to the attorney concerning the guidelines of your case.