Naturally, one of the most frequently posed questions by our prospective Salt Lake bankruptcy clients is: Will I lose all of my property if I file for bankruptcy? The simple answer is a resounding NO!
It is possible, however that you are required to surrender SOME of your property. In practice very few of our clients lose any property and those that do lose very little and have some discretion as to what property they surrender. If and what property you may be required to surrender depends on a number of factors including, what property you have, the value of your property and the chapter of bankruptcy you file. The best way to determine how bankruptcy may affect your property is for you to schedule a free Salt Lake bankruptcy evaluation with one of our Salt Lake bankruptcy lawyer. We provide a general overview of the factors that impact your property here.
When you file for Salt Lake Bankruptcy, you must list all of your assets from real estate to bank balances to household furnishings and self-appraise the property’s value. The bankruptcy rules then classify your assets as either exempt, or protected, or non-exempt (non-protected). Only non-exempt property is at risk to surrender, but not all non-exempt property will be surrendered.
Salt Lake Chapter 7 Bankruptcy
In a Salt Lake chapter 7 bankruptcy, the bankruptcy trustee can require you to either surrender the non-exempt property in exchange for a discharge of your debts or you may pay the value of the non-exempt property that you want to keep and retain the property.
Salt Lake Chapter 13 Bankruptcy
In a Salt Lake chapter 13 bankruptcy, you will be required to repay the value of any non-exempt property over the term of your chapter 13 repayment plan. You can also chose to surrender the property to reduce the chapter 13 repayment plan.
Our job as your bankruptcy lawyers is to ensure that all or as much of your property as possible will be exempt. During a free bankruptcy evaluation with our experienced Salt Lake bankruptcy lawyer we may recommend a pre-filing strategy to convert non-exempt property to exempt. Schedule your free consultation today!