Bankruptcy Doesn’t Mean Losing Any of Your Property
When most people imagine bankruptcy, they think of one having to part ways with some or all of their assets to pay back creditors. It is because of this misunderstanding that many shy from taking advantage of bankruptcy when they are finding it difficult to manage their debts.
It is important to know that for individuals’ debtors, two main types of bankruptcies exist to provide them with financial relief – Chapter 7 and Chapter 13. Only in Chapter 7 are your assets liquidated to pay back creditors, while in Chapter 13, your payments schedules are rearranged to one that you can manage better. So, if it is merely a lowering of the monthly debt repayments that you are seeking, filing under Chapter 13 is the way to go.
However, even in Chapter 7 bankruptcy, legal protections exist both on a Federal and State level that prevent properties essential to your survival from being sold off during the process. In Texas, for instance, this can include but isn’t limited to personal properties up to $100,000 in value ($50,000 if single), one motor vehicle, and your main residence.
Have any questions relating to bankruptcy? Don’t hesitate to schedule your free consultation with the Law Offices of the Sean T. Flynn
Phone: 512-640 3340
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