What Property Can I Keep In A Tennessee Bankruptcy?
What property can I keep if I file for bankruptcy? That is one of the most common questions that people ask when contemplating bankruptcy. Many people fear that they will lose their home, their car, their furniture or personal property that has sentimental value.
If you are concerned that bankruptcy will cause you to lose your property, I encourage you to contact me, attorney Steven F. Bilsky. While I must speak with you to provide a precise answer to your questions, I can tell you that many of my clients keep all or a majority of their property.
Chapter 7 Exemptions
Chapter 7 may result in the liquidation of certain property. However, numerous exemptions exist that enable debtors to keep certain types of property.
As a general rule, there is a $10,000 per person or $20,000 per couple exemption for personal property, household goods, furniture and vehicles. Tennessee also allows exemptions of specified amounts for homes, clothing, retirement funds, tools of the trade and other miscellaneous items.
Should You Reaffirm A Debt?
While bankruptcy exemptions protect certain property from liquidation in a Chapter 7 bankruptcy, they do not affect a secured creditor’s right to repossess property. If you owe a debt on secured property, you may consider entering into a “debt reaffirmation agreement” to keep the secured property. A reaffirmation agreement essentially reinstates your obligation to repay a loan. I can discuss this issue and help you decide if this is right for you.
Chapter 13 Has A Plan
Chapter 13 is not a liquidation chapter. Instead, it uses a “Chapter 13 plan” to repay a portion of your debts. As a result, the bankruptcy trustee will not take any of your property. However, if you have secured debts, such as a motor vehicle or home, you must continue to make timely payments of these loans. Certain exceptions apply, such as cases where a debtor is able to strip a second mortgage and still keep his or her home.
Helping People With Bankruptcy Since 1980
I have more than 39 years of experience in bankruptcy law. I have helped thousands of clients obtain debt relief. I practice exclusively in bankruptcy law to provide each of my clients with experienced and knowledgeable representation.