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How To Decide What To Keep When Filing Bankruptcy

When you file for the protection of bankruptcy there are many decisions to be made. First, you will need to decide which type of bankruptcy protection to seek; a Chapter 7 or a Chapter 13. This decision is best made with the guidance of an experienced debt management and resolution attorney, because the chapter of bankruptcy filed does not lie entirely in your hands. Once you have determined what form of relief you are eligible for, you will then need to decide what assets you wish to keep. A common misconception about bankruptcy is that a debtor can file for relief and keep their property without making payments. This is simply not true, so careful thought must be given to what is needed to reorganize your finances, and what will help you to reach your goals.

The way most property is held on to during bankruptcy is by agreeing to reaffirm the debt. A reaffirmation agreement is a signed document, whereby you agree to remain personally liable for the debt even after the bankruptcy has been completed. Because the purpose of bankruptcy is to eliminate debt, entering a reaffirmation agreement should not be done on a whim. Some things to consider when trying to decide what to keep (and possibly reaffirm) when filing bankruptcy include:

  • Is the asset necessary for an effective reorganization of your debts?
  • Are the payments within your budget?
  • Will you suffer financial hardship if you are made to continue making payments for the property long after the bankruptcy case is over?

Only you can answer these questions, but we can help. Our experienced team of bankruptcy specialists will sit down with you and go over your budget, and what you hope to gain by filing bankruptcy. After an honest discussion takes place, you will be in a good place to make a decision that meets your needs. Our approach is one that allows you to obtain the fresh financial start you need, while also allowing you to keep the things that will help you obtain that goal. Common items people hang on to in bankruptcy include their home and car, but your situation may be different and so deserves individualized attention. Call us today to find out more about bankruptcy, and your options.

For more information about the decision to reaffirm a debt in bankruptcy, contact us at We will help by coming up with solutions that work for you.

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