Will I lose my property if I file for bankruptcy?

Filing for bankruptcy in Washington is a serious legal process and it is important to understand the potential effects on your property. Generally, filing for bankruptcy will not mean you lose all of your property. However, it depends on the type of bankruptcy you file. In a Chapter 7 bankruptcy, some of your property may be sold to pay off your debt. The property that you can keep is determined by state exemptions, which vary from state to state. In Washington, you can usually keep property such as one vehicle, furniture, tools, clothing, and retirement accounts. In a Chapter 13 bankruptcy, you may have to sell some of your property to make payments to your creditors. But the court may approve a plan for you to keep all of your property if you are able to pay your creditors over a three-to-five year period. In either type of bankruptcy, secured debt such as a home or car loan must be paid to keep the collateral, or the lender may take the property. It is important to contact an experienced attorney who can explain how bankruptcy law applies to your unique situation, and what you can expect to happen to your property if you file for bankruptcy.

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Will I lose my property if I file for bankruptcy?

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