Will I lose my property if I file for bankruptcy?

Filing for bankruptcy does not automatically mean you will lose property in Mississippi. Depending on the type of bankruptcy you file, you may be able to keep some or all of your property. If you file a Chapter 7 bankruptcy, you must pass the “means test” to see if you have money for creditors. If you don’t have enough money to pay your creditors, the court may let you keep certain “exempt” property like your home, car, clothing and basic household items. If you have more than the allowed exemptions, your non-exempt property can be sold to pay your creditors. If you file a Chapter 13 bankruptcy, you’ll create a payment plan to pay your creditors over a period of three to five years. You keep all of your property, but you must make regular payments to the court-appointed trustee during this period. After you’ve completed the payment plan, any remaining debt may be discharged. It is important to note that if your creditors have liens on your property, it may be difficult to keep it in either type of bankruptcy. You should speak to a bankruptcy attorney to learn more about what property you can keep if you file for bankruptcy.

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