RESEARCH & LEARN

Bankruptcy: Assets You're Allowed to Keep


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TERMINOLOGY

The type of bankruptcy you file will determine which assets you are permitted to keep. There are certain limitations on the items you are allowed to retain, so you will need to check with your bankruptcy attorney to find out if the state you reside in permits you to claim the assets you want.

Chapter 7 Assets

When you file for a Chapter 7 bankruptcy, the court-appointed trustee will determine the value of each of your assets in order to distribute them among your creditors. You are allowed to keep the following assets under a Chapter 7 filing:

  • All equity built-up in your primary residence
  • Vehicles that are worth $6,600 or less
  • Retirement savings

Chapter 13 Assets

When you file for a Chapter 13 bankruptcy, since this type of filing is a three-to-five year reorganization, you are allowed to keep the following assets:

  • Your home - If you are unable to maintain the payments on your home mortgage during the reorganization period, you may be subject to foreclosure.
  • Stocks and securities
  • Personal property not to exceed $1,000 in value