Sometimes people worry they will lose their assets when they file for bankruptcy. In fact, in most cases, due to the exemption laws or the type of bankruptcy you file, you will be allowed to keep the majority or all of your assets.
Different state and federal laws determine what assets are protected, or exempt from being seized and sold to satisfy creditors. You cannot pick and choose areas from each. You must choose either the state or the federal laws. Your attorney will help you determine which set of exemptions will best serve you and your debt. If your property is exempt, it does not mean you will not have to pay for it, what it does mean is that creditors cannot use that property to satisfy your financial obligation to them.
If you file Chapter 13 bankruptcy, you keep all of your assets and set up a repayment plan to pay back the arrears on your home or vehicle. If you plan to keep your home or your car throughout the bankruptcy process, you must continue to make the payments, as well as make the repayments. Sometimes you can get better rates so your monthly payments can be lowered.
The bankruptcy principle is to give a debtor who is overwhelmed in debt a fresh financial start. If the courts were to take everything a person owns, they would be worse off then before.
States differ in what they consider exempt; you can not move to another state and declare bankruptcy, hoping to take advantage of the better exemptions. You must live in the state for two years prior to filing bankruptcy. Otherwise, you have to file using your previous states exemption laws. You can always choose the federal exemptions if they are more favorable then your state exemptions.
Exemptions can be complicated. It is wise to contact a Cincinnati bankruptcy attorney to help you get the most relief from your debt.