Student Loans and Bankruptcy

3 Items You Can Keep When Filing For Bankruptcy

7 January 2016

Roy Sanders

While you never expect to find yourself in a situation where you can't make ends meet, it can happen at any point in time. Job loss, cutbacks, reduced hours, medical illness and others can all cause you to fall short of being able to meet your monthly obligations. When that happens, the bills start piling up and debt collectors continue to call. If this sounds like something you are dealing with, a Chapter 7 bankruptcy might be just what you need. If you are worried about losing all of your prized possessions, don't be. Here are a few items you can keep even when filing for bankruptcy.

Vehicles

Regardless of whether your vehicle is paid off or you still owe money on it, you don't have to worry about losing it when you file for bankruptcy. In the event you still owe money on the vehicle, you have the option of reaffirming the debt and negotiating terms with the lender. They will often work with you to make sure you can meet the new schedule and still retain ownership of the vehicle. If your vehicle is paid off, there are exemptions your attorney can use to make sure the bankruptcy court cannot take your vehicle and sell it to pay off creditors.

Home

Many people are concerned with losing their home, but that isn't a problem. You can choose to walk away and start fresh in a rental or continue making payments and reaffirm the debt. You have to look at how much money you still owe on the home and whether you are honestly going to be able to afford it when all is said and done. That will determine which avenue you should take.

Furniture

If you have a furniture loan, you can reaffirm this debt as well. You always have the option of giving the furniture back and starting over with different items. That is entirely up to you. If it is your own furniture that you own that you are worried about, the lawyer will mark those items as exempt and protect them from being taken from you.

Just knowing that you can keep the three items above can help eliminate a lot of stress and chaos. Filing for bankruptcy doesn't mean that you have to lose out on all of the things you worked so hard for. You can continue to keep your items and alleviate some of the stress and hassle that comes from having too much debt. Find out more by speaking with a licensed bankruptcy lawyer today.

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