Will I lose my property if I file for bankruptcy?

The short answer is that it depends on the type of bankruptcy you file for and which type of property you own. In Minnesota, if you file for Chapter 7 bankruptcy, you may be eligible to keep some property exempt from the bankruptcy estate, or the pool of assets the court will use to pay back creditors. This property is exempt from liquidation in order to help people who are having financial difficulties. Your exempt property can include your home, vehicle, most household furnishings, retirement accounts, and more. However, if you have property that would not be protected in Chapter 7, you may want to consider filing for Chapter 13 bankruptcy instead. With Chapter 13, you can keep all of your property, including both exempt and non-exempt assets, as long as you make payments based on your ability to pay back your creditors over a 3-5 year period. During the repayment plan, you are also protected from creditors wishing to repossess or foreclose on your property. In conclusion, filing for bankruptcy does not necessarily mean that you will have to forfeit your property. Whether or not you keep your property depends on the type of bankruptcy you file for and the type of property you own. To find out more, it is best to speak with an experienced bankruptcy attorney in Minnesota.

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Will I lose my property if I file for bankruptcy?

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