If you are struggling to pay your bills, you may have considered personal bankruptcy as a way to stop creditor harassment and get a fresh financial start. You may worry, though, that you will put all your assets at risk, that you may lose all the property you worked so hard to obtain. This blog post addresses how the consumer bankruptcy laws affect your rights to retain your property.

At the office of bankruptcy attorney Carrie Weir, in Rockwall, Texas, I provide a free initial consultation to anyone considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.

How Bankruptcy Affects Your Right to Your Property

When filing for personal bankruptcy, you generally have two options: a liquidation proceeding under Chapter 7 and a debtor reorganization under Chapter 13. Both give you the benefit of the automatic stay, preventing your creditors from taking any action outside of the bankruptcy process to collect the debt from you. The two chapters treat your assets differently, though.

In a Chapter 7 bankruptcy filing, you are allowed to permanently discharge certain debts in exchange for the sale of some of your property. Some obligations, such as child support arrearages, school loans and some tax obligations, are generally not dischargeable in bankruptcy. On the other hand, you can choose to make certain assets exempt from sale to satisfy debts. The laws governing bankruptcy exemptions are determined by state statutes. In Texas, for example, you have an exemption that protects a certain amount of value in your home. You can also claim exemptions for your car and other personal property items. Of course, the more property that you seek to exempt from sale, the less you have to satisfy creditors and the less likely your petition will be granted.

In a Chapter 13 bankruptcy proceeding, you are allowed to keep all of your assets, entering into new payment arrangements. This is one of the principal reasons that many people opt to file for protection under Chapter 13 instead of Chapter 7. With this type of filing, you don’t have to worry about whether you can keep your assets. Your focus is on restructuring your debts in ways that are acceptable to your creditors.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

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Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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