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When filing for bankruptcy, it's understandable that you'd want to hang on to as much of your property as possible. For those filing for Chapter 7 or Chapter 13 bankruptcy, the issue of what and how you can keep your property can easily become quite confusing. To clear up some of that confusion, attorney Jeremy Bueker of the Bueker Law Firm in Stuttgart, Arkansas, shares three important things to know about retaining your valued property during a Chapter 13 bankruptcy filing.

3 Things to Know About Keeping Your Property During Chapter 13 Bankruptcy

1. You Are Allowed to Keep Your Property

A Chapter 7 bankruptcy will often involve a liquidation of one's assets and property. Chapter 13, on the other hand, lets you keep your property so long as certain conditions are met. In general, you can hold on to your property if you are able to repay what you owe on it through your Chapter 13 payment plan while keeping current on any monies still owed on the property.

2. There Are Special Requirements Concerning Nonexempt Assets

Chapter 13 bankruptcyIf you have nonexempt assets, you can keep them under a Chapter 13 arrangement. There are, however, some special requirements pertaining to nonexempt items that may influence your decision to retain the items or liquidate them. In most cases, you will be expected to pay your unsecured creditors an amount equal to the value of your nonexempt assets.

3. You Can Permanently Stop a Foreclosure or Repossession

With Chapter 13 bankruptcy, you can put a permanent stop to any foreclosure or repossession action being taken against you. You will catch up on the payments you've missed via your Chapter 13 repayment plan, and this demonstrates a good faith effort on your part to make good on the loan. Honoring your repayment commitment also safeguards you from any collectors foreclosing or repossessing your property during the payoff process.

 

Contact Jeremy Bueker, Attorney at Law, of the Bueker Law Firm to arrange a free consultation with a lawyer. You can also reach the firm by calling (870) 673-1313 or visiting them on Facebook. Reap the benefits and protections bankruptcy provides, and discuss your Chapter 13 options with Attorney Bueker and his team.

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