If you file for bankruptcy, will you lose everything? | Milwaukee, WI

BREAKING NEWS:   U.S. Department of Justice announces new rules to discharging federal student loans. Find out if you qualify TODAY!

Milwaukee 414-250-7880         Madison 608-465-4594         Green Bay 920-626-3125


Serving all of Wisconsin

Toll-free 866-906-5634  Milwaukee  414-250-7880     Madison  608-465-4594     Green Bay 920-626-3125

Our 3 Step Process

Step 1:
Get Out Of Debt

Step 2:
Clean Up Your Credit

Step 3:
Build Your Score

Home 9 Bankruptcy 9 If you file for bankruptcy, will you lose everything?

If you file for bankruptcy, will you lose everything?

by | Mar 31, 2021 | Bankruptcy

If you are struggling to pay medical bills, credit card debt or even living expenses, you are in good company. In fact, the average American has more than $90,000 in outstanding balances to pay. Still, having more debt than you can afford may ruin your quality of life.

Filing for bankruptcy protection may help you both to address your debt in a proactive way and to work on building a brighter financial future. Still, you may worry you stand to lose all your assets during the bankruptcy filing. This is probably not the case, however.

Chapter 13 bankruptcy protection

Two types of bankruptcy protection are popular with individuals: Chapter 13 and Chapter 7. With Chapter 13 bankruptcy, you come up with a repayment plan for your debt. This type of bankruptcy typically allows you to keep all or most of your property, although you likely must make monthly payments for a few years.

Chapter 7 bankruptcy protection

Chapter 7 bankruptcy works differently than Chapter 13 bankruptcy in a critical way. With Chapter 7, you do not repay debts. Instead, the bankruptcy trustee sells your assets to satisfy your creditors. You are not likely to lose all your assets for a couple reasons, though.

First, there are many exemptions in bankruptcy law. If your assets fall into an exempt category, you do not have to part with them. Second, even if your assets do not qualify for an exemption, the cost of securing and selling them may be too significant to be worthwhile to the bankruptcy trustee.

Ultimately, which type of bankruptcy is right for you probably depends on a few factors. Whether you choose Chapter 7 or Chapter 13 bankruptcy protection, you may not want to let the possibility of losing assets dissuade you from taking control of your finances.

the secrets about bankruptcy they don't want you to know

Complete this form to receive your FREE copy of Attorney Miller’s book, The Secrets About Bankruptcy They Don’t Want You to Know. Order today to begin your personal journey toward true financial freedom.

Sidebar (Book Request)