Personal Injury Lawyers
of Long Island

(631) 801-0057

  • Home
  • Credentials Matter
  • Practice Areas
    • Personal Injury
    • Car Accidents
    • Truck Accidents
    • Workers Compensation
    • Medical Malpractice
    • Wrongful Death
    • Cruise Accident
  • Blog
  • Free Case Evaluation

September 24, 2020 by PILLI Law

What Happens to Assets During Bankruptcy?

If you are considering the possibility of filing bankruptcy, it is likely that you are dealing with a financial crisis. Whether this was brought on by mishandling money or an unforeseen event that wiped you out financially, you need help getting out.

Bankruptcy may seem scary, especially if you have only ever heard bad things about it. The fact is, bankruptcy is a way that you can get a fresh start sooner rather than later. You may be concerned about some of the things you own being taken to pay off your debts. While this may happen if you file, it is not what you are probably assuming. Take a look at what might happen to your assets and property if you file for bankruptcy relief.

Chapter 13 Bankruptcy

Personal bankruptcy falls under either Chapter 7 or 13. The rules of each differ. Chapter 13 allows you the opportunity to repay some of your debt by establishing a plan with creditors. The trustee will negotiate to set up something that you can stick to for three to five years. Your income relative to the amount of your debt will dictate if you qualify for this type of process. Under Chapter 13 bankruptcy, you do not have to sell assets or give up property. However, while you will get some sense of relief from debt, you will still make payments for a while.

Chapter 7 Bankruptcy

Chapter 7 is a more radical approach to wiping out debt. During this process, a trustee is appointed who will negotiate the payment of some of your debt. The trustee will then get a full account of all assets in your name to decide what you will have to relinquish and what you will keep. You do get a say in most of these decisions. The trustee will likely recommend that those items you still owe money on, such as second vehicles, recreational vehicles, and second homes, are either returned to the creditor or sold to pay off the debt. The money you have in retirement accounts, health savings accounts, or trusts is not eligible for liquidation at a trustee’s behest. However, you may decide to withdraw funds if it means paying off debt. Ultimately, a Chapter 7 bankruptcy discharges a great deal of your debt because the likelihood of you having enough in assets to pay it all off is slim. Chapter 7 may be the way to go if you are looking for a quicker clean slate.

The decision to file bankruptcy is yours and yours alone. If you are on the fence about the route you should take, consulting with a lawyer, like a bankruptcy lawyer from Darrell Castle and Associates, PLLC, in your town might help.

Filed Under: Uncategorized Tagged With: bankruptcy lawyer

  • Home
  • Credentials Matter
  • Practice Areas
    • Personal Injury
    • Car Accidents
    • Truck Accidents
    • Workers Compensation
    • Medical Malpractice
    • Wrongful Death
    • Cruise Accident
  • Blog
  • Free Case Evaluation

LONG ISLAND PERSONAL INJURY RESOURCES

Long Island Personal Injury Law Firm
Long Island Personal Injury Lawyer
Long Island Car Accident Lawyer
Long Island Workers Compensation Attorneys
Long Island Medical Malpractice Attorneys
Long Island Wrongful Death Lawyer
Long Island Cruise Accident Attorneys
Free Legal Advice
Legal and Financial Advisor Rockville MD
Car Accident Lawyer Long Island NY
Long Island Truck Accident Attorney
Auto Accident Lawyer Long Island
Long Island Car Accident Lawyers
Long Island Auto Accident Lawyer
Long Island Car Accident Attorney
Car Accident Injury Lawyers Indianapolis IN
Who is the Top Bankruptcy Lawyer in Cypress, TX Civil Rights Litigation Lawyer Washington, D.C.
Personal Injury Blog
Denver Bicycle Accident Lawyer
Bus Accident Lawyer Los Angeles CA

Location

500 Merrick Road
Suite 200
Rockville Centre, NY 11570
(631) 801-0057

Free Consultation

Request a free consultation with one of Washington DC's premier personal injury law firms.

Request Free Consultation

No Legal Advice Intended. This website includes general information about legal issues and law practices. Such materials are for informational purposes only and should not be considered legal advice or counsel. Information may not reflect current legal standards. For legal advice specific to your needs, contact an attorney licensed in your jurisdiction. Do not rely on any statement on this website for any reason whatsoever. Furthermore, the information contained in this website is for informational purposes only. It is not, nor is it intended to be, legal advice or representation. Your review or use of this web site, its information and links does not create an attorney-client relationship or an attorney-client privilege between this law firm and you. Statements made to this firm before the formation of an attorney-client relationship may not be privileged and confidential.



© COPYRIGHT 2023 LONG ISLAND PERSONAL INJURY LAWYERS | POWERED BY Matador Solutions - Internet Marketing Company

Other Resources
American Bar Association | The American Lawyer | National Lawyers Association | Lawyers Without Borders | American College of Trial Lawyers | American Bar Association | National Association of Women Lawyers | Lawyers Associated Worldwide | Cohen & Cohen P.C. | Auto Accident Lawyer DC | Auto Accident Lawyers Washington DC