Will I Have to Sell Off My Belongings to Pay Back My Debts in Chapter 7 Bankruptcy?
One of the most common fears people have in regard to bankruptcy is whether they'll be able to keep their possessions. Really, it all depends on what kind of bankruptcy you're eligible for. If Chapter 7 bankruptcy is your best option, then selling your property and possessions may come into play.
Chapter 7 is known as "liquidation bankruptcy" and generally speaking, what happens is the court will look and see what kinds of assets you have that can help you pay these creditors back. I myself like to think of this process as searching for that pot of gold valuable enough to put a big dent in paying off your debt. In reality, 90% of the time most people don't have anything they can sell. They usually have only ordinary household goods and furnishings that don't hold much monetary value. In those cases, we may have to explore other options to discharge your debt.
Whether you're concerned about holding on to your possessions or generally finding debt relief, I encourage you to call my law firm. As a Huntsville area bankruptcy lawyer, my goal is to help you find financial relief and move toward a debt-free future.