Can I Keep my Property if I file for Bankruptcy?

Answer: This is a really common question and something that is a huge consern for individuals considering filing for bankruptcy.  Before you file bankruptcy, you want to know what will happen to your stuff. You can usually keep your property if it meets the qualifications of "exempt" property.  Exempt property is property that is not subject to the claims of creditors or a bankruptcy trustee, i.e., it is “exempt” from seizure.

Sounds great right?  Filing for bankruptcy and still being to keep the majority of your things. It isn't quite that simple as there are circumstances in which you may not have the opportunity to save your property even if it makes the standards set for exempted property.  Contact an Arizona attorney for assistance.

One of the aforementioned situations could happen where a creditor has a lien on property that would otherwise be exempt? In many situations, a lien that you grant to a creditor, or a “consensual” lien, takes precedence over your exemption. For example, you may be entitled to claim a homestead exemption in your residence, but if you give a creditor a second mortgage, that lien may eat up all the equity that would otherwise be exempted in the homestead exemption of your bankruptcy filing.

Most people that our Arizona bankruptcy attorneys meet with during their initial consultation have a home, a car, household items, and retirement accounts, all of which are usually exempt when filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy protection.  It is quite common that even though you are filing for bankruptcy protection that you have amassed assets that you are wanting to keep.  An experienced attorney can assist you with the process of filing for bankruptcy protection in Arizona.

Remember, you are allowed to keep your exempt assets when filing for bankruptcy and a qualified bankruptcy attorney  would be your best bet to have on your side to assure that you are able to keep as much of your stuff as possible when filing for bankruptcy protection.

You are allowed to keep those items that are exempt when filing for bankruptcy protection. The concept behind exempt items is that you will need certain basic items in order to make a successful fresh start after declaring bankruptcy. Contact a Mesa, Tucson, Tempe, Glendale, or Phoenix, Arizona bankruptcy lawyer today to get clarification what property you are able to keep when you file for bankruptcy.