If you experience significant financial difficulties in Memphis and the surrounding areas, including Arkansas, you may decide to file for bankruptcy. When used correctly, a bankruptcy filing can help you regain control of your finances. During the process, some filers worry that they will have to give up all of their assets. In reality, consumer bankruptcy allows you to keep some assets.
Consider the assets you may keep after filing consumer bankruptcy
Courts make decisions about assets you can keep based on both state and federal guidelines. In general, you can keep the following types of assets after filing for consumer bankruptcy:
• Tools needed for your job
• Some vehicles
• Retirement and pension benefits
• Small amounts of personal jewelry
• Life insurance
• Unemployment, social security, and workers’ compensation
In some cases, you may also be able to keep your home. The amount you owe on your mortgage and the type of bankruptcy you file will help determine whether you are able to remain in your home.
Understand the types of assets you will not be able to keep
You will not be permitted to keep most luxury assets when you file for consumer bankruptcy. These assets include:
• Luxury vehicles
• Vacation homes
• Rental properties
• Expensive artwork
You will likely not keep your credit cards
All creditors should receive the same treatment in a bankruptcy filing. This means that you typically cannot discharge some debts while continuing to pay your credit card bill. In most cases, you cannot keep your credit card after filing for consumer bankruptcy.
Filing takes time and can be a complex process
Once you begin to contemplate filing for bankruptcy, you should begin to make a list of all of your assets. Include the ones you owe money for and that you have already paid off. This will make the process go much more smoothly.