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WHAT CAN I KEEP AFTER BANKRUPTCY?
One of the myths that circulate about bankruptcy
is that
you lose everything you own when you file bankruptcy.
This is not necessarily so. In reality, you may be able to
keep many of your possessions, based on the kind of
bankruptcy you file for. The Bankruptcy Code and Florida
Law allows for some exemptions of property, including the ability
to keep your home, a car, personal clothing, as well as household
furniture up to certain limits.
Chapter 7 Bankruptcy
Typical examples of property that you
can keep include your home, a car, household goods and furnishings,
clothing, appliances, books, pets or musical instruments, tools
of your trade, the cash value of a life insurance policy, health
aids, your right to receive social security, unemployment, welfare,
veteran’s benefits, disability, illness, alimony, support,
and more, all of them up to a predetermined cash value and with
certain limitations. However, the Bankruptcy Trustee may sell
some of your personal items and property in order to pay creditors
all or a portion of what you owe them. In general, non-exempt
items could be sold to satisfy your debts.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a reorganization
of your debts to bring them to a manageable level. Most of your
debts owed on credit cards or loans will be incorporated into
the terms of your repayment plan. You will be allowed you to keep
your home, cars, and personal property in accordance with applicable
exemptions and the Chapter 13 plan.
Florida provides a generous homestead exemption
pursuant to Florida's Constitution so you should be able to keep
your home if you choose to do so.
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