If you’re going through bankruptcy, you might worry about losing all your belongings. Fortunately, bankruptcy laws allow you to keep certain assets. Understanding what you can and can’t keep can help you feel more in control during this process.
Can you keep personal property and household items?
Many types of personal property, like your clothing, furniture, and household appliances, are typically safe in bankruptcy. You won’t need to give up your basic necessities, like your couch or kitchen appliances. However, if your items are of significant value, they may fall under different rules depending on your bankruptcy type.
Can you keep your home and real estate?
One of the top concerns in bankruptcy is the fate of your home. In Chapter 7 bankruptcy, you may lose your home if you’re behind on payments and don’t qualify for an exemption. However, in Chapter 13 bankruptcy, you may be able to keep your home as long as you can work out a repayment plan. Under Utah law, you may be able to keep a certain amount of equity in your home, offering added protection during bankruptcy proceedings.
Can you keep your retirement savings?
In bankruptcy, most retirement accounts, like 401(k)s or IRAs, are under protection. Federal law allows these accounts to remain untouched in a bankruptcy proceeding. This protection ensures that you can continue building your future without the fear of losing your retirement savings.
Can you keep your vehicle?
In many cases, you can keep your vehicle during bankruptcy, especially if it’s essential for commuting to work. In Chapter 7, you might have to give up a car if its value exceeds the exemption limits. However, in Chapter 13 bankruptcy, you can keep your vehicle as long as you include it in your repayment plan.
Bankruptcy doesn’t mean you’ll lose everything you own. Understanding how exemptions work will give you peace of mind as you move through the process.