WILL I LOSE MY PROPERTY?
The short answer is probably not. The longer answer is no you will not lose your property as long as you are completely up front and honest with your attorney. Being completely honest with your attorney is necessary because first and foremost: it is a crime to conceal or lie about your property and or assets; the second reason is because your attorney can properly advise you if you are honest and forth-coming. In some situations, bankruptcy is not the answer and your attorney at RS Law will tell you so and advise you as to other things you can do instead of filing a bankruptcy.
In the average bankruptcy case designed for consumers (Chapter 7 or Chapter 13), most of the time Debtors [Link to Definitions & Explanations] end up keeping their property. The reason for this is because every state has exemptions, or “protections,” available to be placed on their property. Now, there are limits to these exemptions and they can only be applied to certain property. For example, in Kansas, the equity in your home is generally 100% protected provided that certain criteria are met.
Will the Court take your clothes? No. Will the Court take your bed? No. Will the Court take your pots and pans? No. Now, these answers are assuming you do not own a warehouse full of clothes, mattresses, or pots and pans. As previously stated, there are limits.
As for your home loan or your car loan; that’s different than the Court taking your property. If you have “secured” loans—which means a loan that is attached to property—you will still need to keep paying on those loans if you wish to keep the property to which they are attached. This is not the Court punishing you; this is the creditor being able to recoup their collateral if you fail to pay, which is often the case whether you file for bankruptcy or not.
Contact RS Law today to find how bankruptcy would affect you and your property, as well as whether or not you should file!