If you file for Chapter 7 bankruptcy you may or may not lose any property, depending on:
- what and how much you own,
- how you own it, and
- what state you live in.
We offer several key articles to help you understand what happens to your property in Chapter 7 bankruptcy:
- The "property exemption laws" available in California and how they can help you.
- What happens to property that is collateral for a loan
- The concept of the "bankruptcy estate"
- The trustee's role in collecting and selling your property for the benefit of unsecured creditors
- What happens to your home mortgage when you file for Chapter 7 bankruptcy?
- What happens to your car?
In a nutshell, in a Chapter 7 case, the trustee's job is to determine if you have any "non-exempt assets" that can be sold for the benefits of unsecured creditors. If not, your case is called a "no-asset" case.
Don't try to hide assets before or after you file for bankruptcy. The bankruptcy trustee can undo any transfers of property you do to family or friends if it you didn't receive full value in exchange.