Can a debtor protect his property in a bankruptcy?

In a Chapter 7 bankruptcy, the debtor is allowed to keep certain “exempt” assets such as most household items, clothes, retirement accounts, property used in business, and $35,000 in equity in the debtor’s home. However, if the debtor has mortgaged the exempt asset (or put it up as collateral for a loan), he may have to “reaffirm” or keep the secured debt, in order to keep the mortgaged asset, if the payoff on the loan equals or exceeds the value of the asset.

In a Chapter 13 bankruptcy, the debtor is allowed to keep most or all of his property. The debtor makes a small monthly payment to the trustee for three to five years to repay a portion of his debt.

Sam Henry IV, Attorney At Law
502 Trenton Street
West Monroe, LA 71291