Can I keep certain assets when filing Chapter 13 Bankruptcy?

Yes, when filing for Chapter 13 Bankruptcy in California, you can keep certain assets. Generally, Chapter 13 allows you to keep any property that is considered exempt from the bankruptcy estate. Depending on the specific situation, many types of assets such as your home, vehicles, furniture, and personal items may be exempt from liquidation. Additionally, certain types of income, including wages and retirement accounts may be preserved. Since state laws can vary when it comes to exemptions, it is important to seek advice from a licensed bankruptcy attorney who can assist you in finding the right exemptions for your particular situation. The bankruptcy trustee will review your assets and determine which ones are exempt. The trustee is appointed to oversee the bankruptcy process and make sure that creditors receive their due payments and any applicable exemptions are applied appropriately. It is also important to note that any assets that are not exempt can be protected through the Chapter 13 repayment plan. The repayment plan allows you to pay the value of these non-exempt assets directly to creditors over a period of three to five years. This gives you the chance to keep assets that you may otherwise need to liquidate in a Chapter 7 Bankruptcy. Overall, it is possible to keep certain assets when filing for Chapter 13 Bankruptcy in California. Speak with a licensed bankruptcy attorney to determine which assets may be exempt from liquidation and which assets can be protected through the repayment plan.

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