Chapter 7 allows you to eliminate unsecured debt such as credit card debt, medical bills, and auto repossessions.
Liens, like mortgages and car loans, are not changed by Chapter 7. With the exception of liens that you granted on already owned household goods (finance companies) and judgments that impair your homestead exemption, which may be avoided by Motion. Make an appointment today, to discuss lien avoidance with an attorney. 844-322-6932
Answer: Generally, no.
But this question requires your attorney collect information about your assets and apply the state exemptions to protect your property. You will be asked about your property list at your hearing.
To discuss this topic with an attorney, schedule a call back by calling 844-322-6932 or use the button below. The attorney will return your call at the appointment time.
Exemptions are a very important part of your bankruptcy. In a Chapter 7 liquidation, the property that you are permitted to keep is the property that is exempt under state law. Even if there is a lien on exempt property, the bankruptcy court may avoid a lien that impairs an exemption permitting you to keep the property. It is also permissible for the trustee to sell property and return to you the cash value of your exemption.
In Chapter 7 property that you own, not exempt under state law, is gathered into an “estate” that may be sold to pay creditors. A benefit of Chapter 7 is that you get your fresh start sooner (the Discharge Order issues 90 days after your case is filed), which means you get to start rebuilding your credit sooner.
Exemptions are also used in Chapter 13 because what your creditors would receive in a Chapter 7 is the base amount that you must pay in your Chapter 13 plan (This is called the best interest test.) You must claim your exemptions within fifteen (15) days of filing your bankruptcy petition.