Filing for bankruptcy can wipe out debt, but it might also cost you. Here's what you risk losing in the process.

Convert Non-exempt Assets Into Exempt Assets In some circumstances, it might be legal and advantageous to convert non-exempt assets into exempt ones before filing for bankruptcy.

Chapter 7 allows you to discharge your debts by selling non-exempt assets, whereas Chapter 13 discharges debts by creating a repayment plan and paying the debts off over three to five years.

Property of the estate is protected (with certain exceptions) by the automatic stay under section 362; it may generally be sold, used, or leased under section 363, and, if unencumbered or non ...

Pros Asset retention: Chapter 13 allows you to keep certain non-exempt assets as long as you make regular payments according to the repayment plan.

Additionally, you may be required to surrender some non-exempt assets to be sold for creditor repayment. Chapter 11: Reorganization for Businesses and Individuals with High Assets ...

You have significant non-exempt assets. If you own valuable property that's not protected by exemption laws in your state, Chapter 7 bankruptcy could result in forced liquidation.

Other assets, however, are considered non-exempt, and these assets are the ones that are most at risk in the context of a bankruptcy filing. As one small example, let’s say a debtor has a small ...

Chapter 7 bankruptcy involves liquidating a debtor's non-essential assets to repay creditors. Chapters 11 and 13 are more expensive and longer than Chapter 7, but you can keep your assets.

However, for non-exempt assets, a court-appointed trustee will oversee the sale of these items, and the proceeds will be used to repay creditors. Chapter 13 Bankruptcy.