One of the most common misconceptions about bankruptcy is that they will lose their property if they file; however, this isn’t always the case. Depending on the type of bankruptcy chapter you file, it could be possible to regain control of your finances while keeping your house and other assets. Our Indianapolis bankruptcy attorneys explain which bankruptcy options may allow you to keep your property.
How to Keep Your Property After Bankruptcy
If you have a steady income but face unmanageable debts, Chapter 13 bankruptcy may be the best option to help you keep your property. Chapter 13 bankruptcy allows you to reorganize and group your debt into one monthly payment. You will likely be required to make payments for three to five years. Once your paying period ends, the remaining debt will be discharged. Since you will still be responsible for some of your debt under Chapter 13 bankruptcy, you will be allowed to keep your property as long as you can continue to make payments on those bills as well.
Under Chapter 7 bankruptcy, some of your property could be subject to liquidation or sale to repay creditors. Although there are some types of property that are exempt from liquidation (such as your house furnishing), you won’t get to keep all your property. Instead, you will get rid of debt in a short amount of time (three to six months), but you won’t get to keep your assets.
Applying for Chapter 13 Bankruptcy
If you want to get rid of unmanageable debt and keep your property, Chapter 13 bankruptcy can help you accomplish both. If you aren’t sure if Chapter 13 bankruptcy would be manageable in your situation, you can contact our team at Jackson & Oglesby Law LLC for guidance. Our Indianapolis bankruptcy attorneys have helped individuals and families regain financial freedom. We are devoted to providing compassionate guidance that can begin with a free bankruptcy evaluation.
Contact our Chapter 13 bankruptcy attorneys today at (888) 713-5148 to schedule a case review!