Do I lose everything in bankruptcy?
Salt Lake City Bankruptcy Lawyer | Utah Bankruptcy Law Firm
The simple answer, no. In a Chapter 7 bankruptcy proceeding there is what is known as “exempt” property and “non-exempt” property. The non-exempt property is subject to liquidation, that is, it will be sold and the proceeds will go to your creditors.
The exempt property is property that you will be able to hold onto in spite of your filing bankruptcy. Whether property is exempt or not depends on state law. So, in Utah, there is a long list of exempt property, including your home appliances, home furniture, beds and bedding, clothing – you know, the type of personal property that nearly everyone owns and which is needed to live a normal life – cars worth no more than $2,500 which you own free and clear, and even your house if you have no more than $20,000 of equity in the home if you are single or $40,000 if you are married.
What will you lose? Well, if you have a really nice car that is paid off, you’ll have to give that up. You’ll also have to sell your investments like stocks and bonds to help pay back your creditors. But all in all, a Chapter 7 bankruptcy is a great option because it leaves you with what you need to start a new life and get back on a debt-free financial path.
Want to Hold on to Your Non-Exempt Property?
Although you cannot hold on to your non-exempt property in a Utah Chapter 7 bankruptcy, you generally can hold on to that property in a Chapter 13 bankruptcy if you comply and successfully finish your payment plan.
Visit our Chapter 13 Bankruptcy Basics page for more information. A Utah Chapter 13 bankruptcy may be right for you if you have a steady income and a significant amount of assets which you want to keep.
Contact Us and Learn Your Options
To get a better sense of what other exemptions may apply for a Utah Chapter 7 bankruptcy contact the Utah bankruptcy attorneys at Salcido Law Firm by phone (local- 801.413.1753 or toll free – 888.337.3235) or email to have your questions answered quickly and confidentially.
Your financial success is right around the corner. Get Protected! today by contacting Salcido Law Firm. We will talk you through the process, tell you your options, and help you to realize that bankruptcy is a great way to start afresh.