Can You Keep Your Property After Filing for Bankruptcy?

Experienced Georgia law firm helps you protect your assets from creditors

Some people unnecessarily delay bankruptcy over fear that they will lose all of their property and be forced to start over with nothing. But bankruptcy exists to protect people from unmanageable debt, not to punish them. For over 30 years, Jeff Field & Associates has been helping Georgia residents use bankruptcy to discharge debt effectively while protecting their homes, vehicles, savings and other assets.

What will happen to your property in Chapter 7 bankruptcy?

Chapter 7 bankruptcy is known as liquidation because certain assets may be sold to pay off creditors. However, Georgia residents may be surprised to learn that they may still keep all or most of their property through bankruptcy exemptions available under state law. These exemptions can apply to a primary residence, personal belongings, retirement accounts and vehicles. Only non-exempt property can be sold by the trustee to pay creditors. 

The vast majority of those who file for bankruptcy under Chapter 7 keep all of their assets and have all of their debts that are eligible for discharge wiped clean. At Jeff Field & Associates, your attorney will discuss your situation in detail so you understand exactly what to expect before you file.

What will happen to your property in Chapter 13 bankruptcy?

Chapter 13 bankruptcy differs from Chapter 7 because it allows debtors to reorganize their debts through a repayment plan. Instead of liquidating assets, you make structured payments over three to five years while keeping your property. 

People may choose Chapter 13 bankruptcy because it can help prevent foreclosure and stop vehicle repossession actions. Once the bankruptcy petition is filed, an automatic stay goes into effect. This legal protection temporarily stops creditor collection efforts, including foreclosure proceedings and repossession attempts. Under Chapter 13 bankruptcy, debtors may be able to:

• Catch up on missed mortgage payments
• Repay vehicle loan arrears over time
• Keep valuable non-exempt property
• Consolidate certain debts into manageable monthly payments

For homeowners who have fallen behind on mortgage payments, Chapter 13 may provide additional time to bring the loan current while allowing them to continue living in the home. Chapter 13 may also allow individuals to keep their vehicles by restructuring their payment obligations. Because transportation is essential for work and family responsibilities, this protection can make a huge difference during financial hardship.

At Jeff Field & Associates, your bankruptcy lawyer will review your income, expenses, debts and assets to create a repayment strategy that meets the court’s requirements.

Which type of bankruptcy should you file to protect your house and car?

Your best option between Chapter 7 and Chapter 13 bankruptcy depends on several factors, including your income, debts, property equity and financial goals. Both forms of bankruptcy may offer options for protecting a house and vehicle, but the right choice depends on your individual situation.

Chapter 7 bankruptcy may work well for Georgia residents who:

• Have limited income
• Are current on mortgage and vehicle payments
• Have property protected by exemptions
• Need quicker debt relief

On the other hand, Chapter 13 bankruptcy may be more appropriate for those who:

• Need help preventing foreclosure
• Want additional time to catch up on missed payments
• Are facing vehicle repossession
• Have non-exempt assets they want to keep

An attorney can compare the two options and explain how each chapter may affect your future. Filing too quickly without understanding exemption laws or repayment obligations could create additional financial problems later.

A fresh financial start begins with the right strategy

At Jeff Field & Associates, we have assisted Georgia residents with bankruptcy matters since 1993. Our legal team can help you understand which path may better protect your house, vehicle and financial future. We have offices located in Bogart, Douglasville, Gainesville, Lawrenceville, Marietta and Decatur, Georgia. Call 404-381-1278 or contact us online to book a free initial appointment.