Protecting Your Assets During Bankruptcy

The bankruptcy process isn’t designed to leave petitioners on the street without a place to live or way to earn income. Instead, filing for bankruptcy is meant to be one way toward a future of financial health and freedom.

Chapter 7 bankruptcy, a common way to file, requires the liquidation of your non-exempt assets. The proceeds are used to help pay for your debts. However, this isn’t your only option. Chapter 13 bankruptcy enables debtors to keep all of their assets while restructuring their debts into an affordable payment plan based on their income and expenses.

In order to file Gilbert Chapter 7 bankruptcy or Chapter 13 bankruptcy, you’ll need to meet certain qualifications. Even if you don’t qualify for a Chapter 13 bankruptcy, many of your assets are still exempt from seizure so that you have the resources you need to move forward. Your attorney can walk you through your options and maximize the protection of your hard-earned assets.

Each person’s financial situation is different, which means you need to work with a Gilbert bankruptcy law firm who provides a personalized approach instead of cookie cutter methods. Be sure to consult with an experienced attorney who will help you maximize the benefits of bankruptcy while protecting your assets.

How Can I Keep My Assets After Filing For Bankruptcy?

Many individuals and businesses qualify for a Chapter 13 bankruptcy. Once you file, all debt collection efforts, pending litigation and judgments, evictions, and foreclosure processes stop immediately. This can provide breathing room while you determine your next actions.

Once you’ve filed your Chapter 13 bankruptcy petition, the court will examine your situation and restructure your debts into a monthly repayment plan that fits with your income and expenses. You’ll make one consolidated payment each month for 3-5 years. At the end of that period, the rest of your debt will be discharged.

Petitioners who file for Chapter 13 bankruptcy and successfully complete their payment plan are able to keep all of their personal and business assets, including their home, vehicle, and bank accounts, both during and after bankruptcy proceedings.

Understanding Chapter 7 Bankruptcy

Individuals who do not qualify for Chapter 13 bankruptcy may need to file for Gilbert Chapter 7 bankruptcy. After the petition is filed, debt collection efforts, eviction or foreclosure, and pending litigation actions will all stop immediately, just like with a Chapter 13 filing.
Chapter 7 bankruptcy is different from Chapter 13 in that a bankruptcy trustee will be assigned to your case to gather and sell all of your non-exempt assets. This includes community property held by your spouse. These assets can include: