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

Types of Assets You Can Keep After Filing Bankruptcy. In the realm of bankruptcy, assets are divided into two categories—exempt and non-exempt. The differentiation between these categories has ...

Known as “liquidation bankruptcy,” Chapter 7 involves selling non-exempt assets to pay creditors. Some assets, however, are exempt, meaning they can’t be liquidated.

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.

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.

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 ...

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 ...

However, the court can only take non-exempt assets, so there is always a chance you won’t lose any. The pros of Chapter 7. Chapter 7 offers several benefits compared to Chapter 13.

Non-exempt assets, counted by Medicaid, cover bank accounts, stocks, bonds, and second homes. For instance, if an individual holds a significant amount in stocks, ...