Will I Lose Everything in Bankruptcy?

Legal Tips and Resources

Many people fear bankruptcy because they think they will lose everything. There are many misconceptions about bankruptcy and what you can and cannot lose. Much of it depends on what bankruptcy path is best for your specific situation.

Will I lose everything in bankruptcy?

No. You will be able to keep your exempt assets, like your home. The law provides for this so you don’t become homeless, so you don’t lose the ability to work and care for yourself and your family.

What assets are exempt?

Generally, exempt assets include:

  • House
  • Household items
  • Vehicles
  • Retirement accounts

In addition to this list, there are other exemptions that may apply to you. By speaking with a skilled bankruptcy attorney, they can help you determine which exemptions are applicable to your situation.

If I file bankruptcy, will I be able to make large purchases again?

Absolutely you will be able to purchase large items again. Depending on the bankruptcy path you take, however, it might take some time before you are able to receive credit to make substantial purchases like houses and vehicles. The most important thing you can do is to change your habits. If you found yourself in a situation where you had to file bankruptcy because of your habits, changing your habits is the best way to ensure you can start to make large purchases again.

Will other people find out I filed bankruptcy?

Possibly. Under Chapter 7 bankruptcy, no one will be notified that you have filed bankruptcy. However, when you file Chapter 13 bankruptcy, your wages will be garnished so your employer will find out. As for other people, filing bankruptcy is public record. So if someone wants to find out if you’ve filed bankruptcy, they can. However, this usually requires great time and effort, sometimes including a fee, so most people won’t simply go looking.

How much does bankruptcy cost?

Filing fees are charged by the court. These are fees that must be paid up front. Our fees will be discussed when you meet with us. We want to help you so we will work with you to create a payment plan that fits within your budget. When you pay us, we act on your behalf, dealing with all of the court paperwork and handling any and all calls from creditors. We take this stress off your shoulders so you can get on with your life.

How do I get help?

You call a law firm today. They have the experience you need to help you get back on your feet.

The longer you wait, the more bankruptcy may cost you. You will owe more interest and you will deal with more harassing creditor phone calls. By working with a credit card lawyer, they can take the stress off your shoulders by handling those creditor phone calls for you. They can also help you create a plan that gets your finances in order and get back on your feet.