We Are Here to Answer Your Questions
When you are facing overwhelming debt, bankruptcy is an excellent option to help you regain your financial footing. Like many people facing bankruptcy, you may have questions and concerns about what you can keep after filing bankruptcy. What will happen to your car, home and other personal possessions such as antiques?
The lawyers of Bishop & Associates, L.L.C., are here to answer your questions about the bankruptcy process. We help clients in Fort Collins and throughout Colorado get out from under the crushing mountain of debt. To schedule a free consultation, contact us online or call 866-599-1897.
What Will Happen to My Personal Possessions?
In most cases, people filing both Chapter 7 and Chapter 13 bankruptcy will be able to keep their personal belongings, including their car and home. However, you must be current on your mortgage and car payments.
In Chapter 7 bankruptcy, any exempt property will be kept after bankruptcy. Colorado has very generous exemptions, including but not limited to:
- $60,000 equity in your home, or $90,000 if you are over age 60 (homestead exception)
- $5,000 equity in your car
- $3,000 for household goods
- $1,500 for clothing
- $2,000 for jewelry
- Any amount in your retirement account, including a 401(k) or IRA
If you are filing jointly with a spouse, these amounts will double, except for the homestead exception. The value of your property is not based on how much you paid for it, but rather how much it is worth now.
A Chapter 13 bankruptcy allows you to keep property that is not exempt under Chapter 7. In Chapter 13, you will create a repayment plan that allows you to pay off your debts over a period of three to five years. In most cases, you may be able to cure the arrears on your car and mortgage payments.
Contact a Fort Collins Liquidation Exemptions Attorney
Our office is conveniently located in Fort Collins where bankruptcy hearings are conducted for people living in Larimer County, Logan County, Morgan County, Phillips County, Weld Creak County and Sedgwick County. To discuss your case with one of our attorneys in a free consultation, call us at 970-672-1038 or toll free at 866-599-1897. You may also contact us online.
