Will I lose my property if I file for bankruptcy?

In Virginia, the answer to the question of whether or not you will lose your property if you file for bankruptcy depends on the type of bankruptcy you decide to file. If you file for Chapter 7 bankruptcy, it is likely that you will be required to surrender some of your property to the bankruptcy court in order to pay off your creditors. The property that can be liquidated by the court is called “exempt” or “non-exempt” property. Generally speaking, exempt property includes items such as furniture, clothing, and retirement accounts. Non-exempt property can include things like luxury items, extra vehicles, and expensive jewelry. On the other hand, if you file for Chapter 13 bankruptcy, you may be able to keep more of your property as the court will create a repayment plan allowing you to pay off your debts in installments over three to five years. During this time the court will not be allowed to liquidate any of your possessions, and at the end of the repayment plan you may be able to keep the remainder of your property. Ultimately, if you are considering filing for bankruptcy, it is important to speak to a qualified bankruptcy lawyer who can provide more specific advice on your particular case and whether or not you will be required to surrender any of your assets.

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Will I lose my property if I file for bankruptcy?

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