What happens to my assets during a Chapter 11 bankruptcy?

When declaring bankruptcy in Michigan, the type of bankruptcy you file determines what will happen to your assets. If you file a Chapter 11 bankruptcy, then your assets will be handled differently than with other forms of bankruptcy. In Chapter 11 bankruptcy, the process is known as “reorganization.” When filing for Chapter 11, you are allowed to keep some of your assets. This is because, rather than liquidating your assets like with other types of bankruptcy, you will be reorganizing your debt—which usually involves creating payment plans so that you can pay off your debt over time. When reorganizing debt, you will likely have to give up or renegotiate certain assets. This means creating payment plans with lenders and creditors for assets such as cars, homes, and other items. However, depending on the circumstances of the particular bankruptcy, some of your assets may be exempt from the refinancing. This means that you would have the right to keep them, even if you owe money on them. The court will ultimately decide what happens to your assets. In some cases, you may be able to keep them all, while in other cases, you may need to make payment plans or give some of them up. Ultimately, your goal should be to make payment arrangements that are as favorable to you as possible so that you can pay off your debt and get a fresh start.

Related FAQs

What happens to my assets during a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts