If I file for bankruptcy, can I keep my property?

NJ Bankruptcy Law FAQ

Q) If I file for bankruptcy, can I keep my property?

A) If a Chapter 13 bankruptcy is filed, you are likely able to keep the property you own. In a Chapter 13 bankruptcy, the debtor pays all or a portion of his or her debts through a repayment plan over a period of years. In consideration of this, the Bankruptcy Court may allow you to retain property such as your home or car. Your ability to retain this property is contingent upon you complying with the payments of any loans secured by the property.

In a Chapter 7 bankruptcy, you are specifically asking the Bankruptcy Court to discharge the debts that you owe. In consideration for this discharge the bankruptcy trustee is permitted to take any property you own that is not exempt from collection. This property can be sold and the proceeds distributed to your creditors as payment for your debt. However, certain properties are exempt from collection. Some properties that may be exempt from collection include, but are not limited to, some of the equity in your residence, any equity in your car, any retirement funds, household furnishings, most types of clothing and appliances.

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Villani & DeLuca P.C. are experienced bankruptcy attorneys.  Call 732-965-3390 for a free phone consultation.