If you have a home or other property, bankruptcy can help you keep it. However, if you are not paying your mortgage or other debt, your lender may have the right to repossess or sell your property. Bankruptcy does not remove these security interests, so you must keep making payments if you want to keep your home. In addition, you cannot lose your car if you file for bankruptcy. Therefore, it’s important to know your rights before filing for bankruptcy.
The bankruptcy estate is a list of all your property, regardless of whether it is your primary residence. In certain cases, your home may be exempt. For example, if you have a homestead exemption, you may keep the equity you have built in your home, allowing you to keep it. In some cases, you may be able to avoid paying back your mortgage by selling your property and keeping the proceeds. If you have any debts that you cannot discharge, your attorney can help you make sure they are not included in your bankruptcy estate. An experienced bankruptcy attorney can give you legal advice about bankruptcy and prepare legal documents for you.
When filing for bankruptcy, make sure you have listed all your creditors. This includes debts that you owe to your friends and family. You must also list any non-dischargeable debts that you have. If you don’t list all your debts, your bankruptcy may not be approved. You can, however, file for a chapter 13 repayment plan if you make less than the median income. If you have a good credit score, bankruptcy will probably have a temporary impact on it.
In addition to the negative effect bankruptcy has on your credit, you will need time to rebuild your credit. To regain your credit after bankruptcy, you can apply for a secured credit card or a credit builder loan. These options will help you rebuild your credit and save your home. In some cases, bankruptcy can even allow you to keep your home.
Chapter 13 bankruptcy involves a repayment plan over three to five years. In this case, you can keep your home even if you owe more than the market value. In addition to your home’s value, you must also list all your non-exempt property. In some cases, you can keep your car, furniture, and other items you might consider essentials.
Chapter 7 bankruptcy allows you to discharge most of your debts without any further payments. It will also stop your creditors from collecting your debts in the future. However, some debts are not dischargeable in bankruptcy, such as alimony, child support, taxes, and debts incurred through fraud. In the end, the bankruptcy court will determine which assets you can keep and which assets are not. If you have to keep your home, make sure that you do so with your best interest in mind.
The bankruptcy court will appoint a bankruptcy trustee. This trustee will be the person who will handle the bankruptcy estate and handle the paperwork. The trustee will also decide whether to approve or deny the bankruptcy discharge. During the bankruptcy process, the trustee will sell your non-exempt property, examine your creditors’ claims, and distribute the proceeds to them.
Bankruptcy is a legal process supervised by federal bankruptcy courts to help people eliminate their debts. The process, however, can have a negative impact on your credit report for up to seven to 10 years. This will make it more difficult to borrow money and may prevent you from getting favorable loan rates. Additionally, the process carries social stigma.
The Bankruptcy Code has several exemptions that protect your property in bankruptcy. The Bankruptcy Code also lists federal and state property that is exempt from repayment. Exemptions in bankruptcy can include items you can’t afford to keep. For instance, the debtor may be able to keep his car under the bankruptcy trustee’s protection.