What Property Can You Keep in Bankruptcy?

The estate is broad. Exemptions carve property back out for the debtor, up to statutory limits, if the claim of exemption is properly made. A trustee can object. Unexempt equity can be administered in Chapter 7 or paid for through a Chapter 13 plan. See Alabama exemptions and Georgia exemptions.

Even if equity is exempt, a mortgage or car lender still has a lien. Keeping the house or car usually means staying current, catching up in Chapter 13, redeeming, or reaffirming. Surrender remains an option. See keep your house and keep your car.

• Are Retirement Accounts Protected in Bankruptcy? — Are Retirement Accounts Protected in Bankruptcy?

  Funds in many tax-qualified plans receive strong protection under the Bankruptcy Code. Traditional and Roth IRAs have a separate cap in § 522. Inherited IRAs and some non-qualified annuities may not get the same treatment. Do not cash out a 401(k) to pay credit cards before talking to counsel.

• Are Tax Refunds Part of a Bankruptcy Estate? — Are Tax Refunds Part of a Bankruptcy Estate?

  The portion of a refund earned before filing is typically property of the estate. You may exempt it if leftover personal-property or wildcard room exists under state law. The IRS may set off a refund against tax you still owe. Timing of the filing relative to the refund is a planning issue—not a loophole to hide funds.

• Can I Keep My Car If I File Bankruptcy? — Can I Keep My Car If I File Bankruptcy?

  Keeping a car usually requires two things: exemption protection for your equity, and a strategy for the lender. Chapter 7 options include stay-and-pay, reaffirmation, redemption, or surrender. Chapter 13 can catch up a car loan and, in some cases, reduce the secured claim.

• Can I Keep My House If I File Bankruptcy? — Can I Keep My House If I File Bankruptcy?

  Many people keep their home. That depends on mortgage payments, equity versus the homestead exemption, and whether Chapter 13 is needed to catch up arrears. A discharge of credit-card debt does not erase the mortgage lien.

• Inheritances and Bankruptcy — Inheritances and Bankruptcy

  If you become entitled to an inheritance, life-insurance proceeds, or a property settlement within 180 days after filing, [§ 541(a)(5)](https://www.law.cornell.edu/uscode/text/11/541) can pull it into the estate even though it arrived later. Failure to disclose can threaten the discharge.

• What Happens to Bank Accounts in Bankruptcy? — What Happens to Bank Accounts in Bankruptcy?

  The balance on the filing date is estate property. You may exempt it if state or federal law allows. A bank that froze the account after a garnishment or setoff needs a stay-and-exemption analysis. Direct-deposited federal benefits have special tracing rules.

We inventory assets, apply Alabama or Georgia exemption statutes to the facts you provide, and explain the difference between exempt equity and a lender’s lien. We also walk through Chapter 7 versus Chapter 13 when a house or car is behind. Outcomes depend on equity, liens, and current law. We do not promise that any particular asset will be kept.