What Property Can I Keep After I File for Bankruptcy?
If you are considering whether filing for bankruptcy is the right option for you, but are concerned about your property interests, and whether you will get to keep your property, one of the biggest myths about bankruptcy is that you will lose everything during the process. This is not necessarily true.
Focusing on Chapter 7 cases only, a Chapter 7 bankruptcy case is commonly referred to as a “liquidation” case. This means that when your Chapter 7 bankruptcy case is filed, all interest in real or personal property is part of your “bankruptcy estate.” A trustee is then assigned to your case to determine whether your bankruptcy estate has any property of value to liquidate, and to further use the sales proceeds to pay your creditors.
However, every state has a set of laws that exempt certain property from liquidation. California, for example, has great exemption laws that allow you to keep your car, your home, financial accounts, and other property. Most beneficial in the State of California is the “wild card” exemption, which allows you to keep approximately $30,000 in property.
The ability to exempt your property is not guaranteed, though. This is because the exemption laws are limited to certain values, which a knowledgeable bankruptcy attorney will know how to apply in your case.
If you are wondering whether bankruptcy is the right option for you, but you are concerned about your car, your home, and other property that you are afraid to lose, contact this office to schedule a consultation and a review of your property interests.
Michelle Patterson Law
p: (619) 630-5282