What Property Can You Keep in Bankruptcy?

Most of what you own is part of the case at filing. Exemptions then protect listed property if you claim them correctly. A trustee can object. Value that is not protected can be sold in Chapter 7 or paid for through a Chapter 13 plan. See Alabama exemptions and Georgia exemptions.

Protecting equity through an exemption does not eliminate a lender’s lien. Whether a financed home or vehicle can be kept depends on the loan, payment status, equity, creditor rights, and bankruptcy chapter. Chapter 13 may allow a debtor to cure certain arrears through a confirmed plan. Chapter 7 vehicle options may include reaffirmation, redemption in qualifying circumstances, or surrender. Mortgages and other real-estate liens require separate analysis. See keep your house, keep your car, and HOA dues.

• Are Firearms Protected in Bankruptcy? — Are Firearms Protected in Bankruptcy?

  Firearms owned when a bankruptcy case is filed are property interests that must be disclosed. Whether their value can be protected depends on the exemption law that applies and the available exemption categories. Bankruptcy law does not provide a special federal exemption specifically for firearms.

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

  Money in many workplace retirement plans has strong protection. Traditional and Roth IRAs have a separate cap. 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 a lawyer.

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

  The part of a tax refund you earned before filing usually belongs to the bankruptcy estate. You may protect some of it if leftover exemption room exists under state law. The IRS may keep a refund to cover tax you still owe. Timing the filing around a refund is planning — not a loophole to hide funds.

• Are Tools of the Trade Protected in Bankruptcy? — Are Tools of the Trade Protected in Bankruptcy?

  Tools and equipment used to earn a living are property of the bankruptcy estate unless protected by an applicable exemption. When Georgia exemption law applies, Georgia has a specific tools-of-the-trade provision. When Alabama exemption law applies, work tools are generally evaluated under other Alabama personal-property protections. Recent interstate moves can change which exemption law applies.

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

  Keeping a vehicle generally requires enough exemption protection for the debtor’s equity and a legally workable approach to the lender’s lien. The applicable exemption law may depend on domicile history. Chapter 7 options can include reaffirmation, redemption when available, or surrender. Chapter 13 may allow arrears to be addressed through a plan and, in qualifying cases, different treatment of the secured claim.

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

  Many bankruptcy debtors keep their homes, but the outcome depends on mortgage status, equity, the exemption law that applies, and the bankruptcy chapter. A bankruptcy discharge of personal liability does not eliminate a valid mortgage lien.

• HOA Dues and Association Liens in Bankruptcy — HOA Dues and Association Liens in Bankruptcy

  HOA or condominium assessments that became due before filing may be dischargeable as personal liability, subject to liens and other issues. Under § 523(a)(16), qualifying fees and assessments that become due after the order for relief generally remain nondischargeable for as long as the debtor or trustee has a legal, equitable, or possessory ownership interest in the property. A valid association lien is a separate property interest and is not eliminated merely because personal liability is discharged.

• Inheritances and Bankruptcy — Inheritances and Bankruptcy

  If a debtor becomes entitled, within 180 days after filing, to certain property through inheritance, a life-insurance benefit, or a qualifying property settlement, § 541(a)(5) can bring that interest into the bankruptcy estate. Disclosure remains important even if the property is not received until later. Chapter 13 can involve additional postpetition-property considerations.

• Is Life Insurance Protected in Bankruptcy? — Is Life Insurance Protected in Bankruptcy?

  A term life policy typically has no cash surrender value, while whole-life and similar policies may have cash value that must be disclosed as an asset. Whether that value can be protected depends on the applicable exemption law, ownership, policy terms, and beneficiaries. If a debtor becomes entitled to certain life-insurance proceeds as a beneficiary within 180 days after filing, § 541(a)(5) can bring those proceeds into the bankruptcy estate.

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

  Money and other rights in a bank account at the time of filing generally become part of the bankruptcy estate, subject to applicable exclusions and exemptions. Whether the balance can be protected depends on the exemption law that applies, the source of the funds, ownership, and other facts. Directly deposited federal benefits can also receive special protection under federal garnishment regulations.

We can identify your property and liens, determine which exemption law applies, and explain the difference between protected equity and a creditor’s lien. If a home or vehicle is behind, we can compare how Chapter 7 and Chapter 13 may affect it.