All property you have when you file bankruptcy can become the property of the bankruptcy estate. A bankruptcy trustee is assigned and that person can use your property to satisfy your debt.
However, any property the bankruptcy court classifies as exempt you will be able to keep.
Exactly what property is classified as exempt depends on your exact filing but here is alist of property that is commonly classified as exempt:
- Cars and Trucks
- Household Items such as appliances
- Jewelry
- Tools you use in your work
- Retirement accounts
- Most life insurance
- Personal injury awards
As for real property, e.g. your house, the main question to ask yourself is whether you can afford the mortgage payments. The bankruptcy court can't force your mortgage lender to alter the terms of the mortgage.
All is not lost, however. Listen to John Ernst, Bankruptcy Attorney in Georgia, discuss this very issue.
This video is #3 in a series of 10 videos. To see the entire video series about filing for bankruptcy, go here.
If you have other questions about your home loan and bankruptcy, this article might be interesting.
