Can You Keep Your Property In Chapter 13 Bankruptcy

1. Can You Keep Your Property In Chapter 13 Bankruptcy?

2. When you file for Chapter 13 bankruptcy, you can choose to keep your assets. However, that doesn’t imply that you can skip the payment for some of it. You’re surely allowed to exempt or protect certain volume of your equity in the assets, so you can continue with your home and job. Now, if you’re adamant about keeping the nonexempt properties, for instance, baseball card collection, any luxury items, such as yacht or boat, you are going to have to pay for it through Chapter 13 repayment plan.

3. Moreover, if you are eyeing on a home, car or other properties that you’re still paying EMIs for, or are put on as collateral, your creditors can claim and take them all back if you ever fail to make payment. You will want to make sure that you can continue making payment for them.

4. Does Keeping Property in Chapter 13Bankruptcy Cost you? None of your properties will be sold in Chapter 13 bankruptcy; however, this doesn’t imply that you have something for nothing. Following are the rules –

5. If each of your assets is exempt, you will be allowed to keep them without facing any penalty charges. But, if any of your properties is nonexempt, you will be required to pay for it. Thus, how do you determine whether you have exempt or nonexempt property? Your state determines the property that you will require for a new beginning in bankruptcy. You can keep exempt properties without any cost, regardless of which bankruptcy you have filed for. But, how your nonexempt properties will be treated depends on the specific bankruptcy chapter you have filed for.

6. Chapter 7 bankruptcy: The trustee of Chapter 7 bankruptcy California will liquidate your nonexempt assets and utilize the proceeds by paying all the unsecured debts. Chapter 13 bankruptcy: The trustee in Chapter 13 bankruptcy won’t liquidate your nonexempt your property. You will rather settle up with your unsecured creditors for the value of your any nonexempt assets through your repayment plan.

7. Nonexempt Assets May Extend your Chapter 13 Repayment Plan In Chapter 13 repayment plan, you will be required to repay certain amount of your outstanding in full. And, these debts include certain taxes and mortgage arrears. The amount, however, you will have to pay your unsecured creditors is determined by your income, nonexempt property, and expenses. Precisely, you will be required to pay off all your disposable incomes, i.e. the amount remaining after amortizing all of your basic living expenses.

8. There is, however, more to this than meets the eyes. With nonexempt properties, you will have to amortize either an amount equivalent to any of your nonexempt properties or your disposable income whichever calculates higher in the end. Hence, when you wish to keep your nonexempt properties, you may potentially have to settle up for a higher dividend with your creditors through your Chapter 13 repayment plan.

9. In effect, if you’re having an enormous quantity of nonexempt property, you may also get precluded from filing for Chapter 13 bankruptcy. Contact an experienced and affordable bankruptcy attorney in Fort Worth at Recovery Law Group to get better insights of your financial condition.

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