What Property Is At Risk During Bankruptcy?

Bankruptcy Attorney

The biggest fear for many who are contemplating seeking protection through bankruptcy is exactly what property will be taken and sold off to satisfy the creditors and what property will be exempt from the proceedings. As discussed in previous blogs, the answer to that question is that it varies from state to state. The fact still remains that in a Chapter 13 bankruptcy the petitioner does not necessarily lose any property at all. Since a Chapter 13 entails the creation of a solid and stable repayment plan for the debtor to pay off the creditor over the course of a set amount of years, the debtor is under no obligation to sell the assets and use that to pay creditors unless he/she chooses to liquidate some of those assets and willingly uses the money to lower his repayment amounts.

Things differ quite a bit in a chapter 7 bankruptcy however. A chapter 7 is a liquidation proceeding meaning that pretty much all of the assets that have been amassed may well be sold off and the money realized used to pay off creditors. There is however a wide list of exemptions that the petitioner may use to save some of the things they have acquired over the years.

Again, the exemptions and the amounts do vary from state and it would be too difficult to list them here. The advisable thing to do would be to contact a qualified bankruptcy attorney in Dayton and get the answers to all of your Ohio bankruptcy questions.

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