Which types of properties can become repossessed in a Bankruptcy?

Your property subject to repossession will be determined by several factors, including whether you file a Chapter 7, 11 or 13 bankruptcy lawsuits. It is important to fill out a bankruptcy proof claim form before anything. Since you referenced pursuing ‘personal bankruptcy for consumer debt,’ it appears that you are interested in a Chapter 7 filing.

Please be aware that certain types of property are considered “exempt” from repossession. Each state determines the types of property deemed “exempt” when federal bankruptcy cases are filed within its borders. Family heirlooms are often deemed exempt, though this is not a universal rule and depends on the value of the items and where you live. Also, bankruptcy courts set a basic limit as to how much personal property can be set aside as exempt. For individuals, it’s usually $30,000. You are frequently allowed to keep your home, although this can vary, depending on its current market value. Limitations also apply to your vehicles.

Another key factor tied to bankruptcy debt repossession is whether or not the property in question is considered “secured” or “unsecured” debt. It’s very important to speak with an attorney about such issues so you’ll know which of your possessions may be at risk once your case is filed. A lawyer can also help you take certain steps to protect your property in many instances.

As for your question regarding bankruptcy repossession for joint property, this will be determined by your state’s laws regarding “marital property” and whether you are filing for bankruptcy alone or with your spouse. Be sure to check with an attorney to see how your state views property held in more than one name.

You may also need to ask your lawyer additional questions if you are just living with another person as your domestic partner or if you are part of a same-sex couple since the laws governing bankruptcy repossession for joint property in these situations can be difficult to interpret or vary widely.

While some individuals have the educational background or work experience to successfully file their own bankruptcy lawsuit, it’s generally wise to have an attorney handle your case. Lawyers understand the general bankruptcy court rules and are also familiar with the local court rules. The numerous debt schedules, lists of creditors and other documents can be rather difficult to fill out correctly.

If you are completely strapped financially, you’ll be glad to know that some lawyers will lower their fees to handle your filing. A handful of the consumer credit counseling programs that offer the required debt recovery courses will also even waive their fees if you can document the extent of your poverty. By visiting the second “additional resources” link below, you can search for your state’s bankruptcy court Web site. General forms, local rules and other information can be found there.