You might lose some property in bankruptcy....

Filing for chapter 7 bankruptcy has it’s benefits: you can shed burdensome debt and get the chance to start over. Creditor phone calls will stop and under certain circumstances, you might be able to turn the tables and sue the same companies that harassed you during dinner. You will likely be offered a credit card after receiving your bankruptcy discharge. Damage to your credit score might not be as bad as you expected. For the first time in a long time, you’ll sleep like a baby. But guess what? Filing for bankruptcy does not come without a price. You might lose some of your property if you file bankruptcy. You might lose your tax refund, a car or even a piece of investment property.

Filing bankruptcy involves making a deal. In exchange for debt relief, you agree to allow the bankruptcy court and trustee oversight over your property. When you file for bankruptcy, your property becomes part of a bankruptcy estate. The bankruptcy estate exists for the duration of your case. By filing bankruptcy, you agree to disclose ALL of your assets to the court. You understand (after meeting with your bankruptcy attorney) that non-exempt assets are subject to sale by the trustee. The trustee sells these assets to give something back to your unsecured creditors. That is the deal and you should be aware of it before deciding to file. Your bankruptcy attorney will advise you what property (if any) you stand to lose. Truth is, filing for bankruptcy isn’t all a bed of roses. Sometimes, the trustee’s inquiries into bank statements, past sales of property or income can feel invasive. It’s not personal, but it is part of the deal. In exchange for debt relief, you agree to lay all of your cards (assets) on the table. If you have assets that are not exempt under your state’s law, the trustee might sell them. Guess what? In many cases, it’s still wise to file for bankruptcy. Of course, every situation is different and a consultation with a qualified bankruptcy attorney is a must, but be prepared: You might lose some property if you file bankruptcy.