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What Assets Can I Keep?

What Assets Can I Keep in Bankruptcy?

NOTE: Major changes were enacted in April of 2022 regarding what assets you can keep in a Chapter 7 Bankruptcy. They are detailed below.

It is not true that you will lose everything in bankruptcy. With an experienced attorney handling your case, you should be able to keep most or all of your assets. The key is knowledge of bankruptcy law and the Colorado bankruptcy exemptions.

We are Loveland attorneys Loomis & Greene. We have handled personal bankruptcies for years. We can give you reliable opinion, before you file, of what property you can and cannot keep, and we can stand up for you if the trustee in your case challenges any of the exemptions.

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We help individuals and families in Colorado maximize the benefits of bankruptcy. Contact me today.

What Assets Can I Keep in Bankruptcy?

In a Chapter 13 bankruptcy, you do not forfeit any assets because you are repaying your debts. In a Chapter 7 bankruptcy, you may be required to pay the value of non-protected assets, or surrender them to the trustee, in exchange for wiping out your unsecured debts.

Our job as your attorney is to maximum your discharge of debt and retain as much of your hard-earned wealth as possible. From countless bankruptcy cases, we are knowledgeable about the qualifiers and little exemptions in the law that less experienced lawyers may not know about.

In general, the following assets are exempt:

  • 100 percent of retirement funds in qualified plans

  • $250,000 in home equity ($ 350,000 if owner or spouse or dependents are over 60 or disabled)

  • $ 15,000 in equity in motor vehicles ($25,000 if over 60 or disabled)

  • $6,000 in furnishings

  • $2,500 in watches and jewelry

  • $ 60,000 in tools of the trade

  • $2,500 in total bank balances

  • $1,000 in firearms

Some exemptions are doubled for a married couple. There are dozens of other exemptions (and exceptions to the rules). We will not submit your bankruptcy petition until we are sure that we have protected your assets to the extent possible.

What Assets Are Not Exempt?

Some assets cannot be shielded in bankruptcy, such as non-homestead property (e.g., a vacation home), tax refunds, cash savings or stocks, boats and recreational vehicles, and firearms, jewelry or luxury items not covered by the statutory allotment. It will be necessary to surrender these assets to the trustee or “buy them back” through a financial agreement with the trustee. If you have substantial assets that cannot be exempted, it may be necessary to file for Chapter 13 bankruptcy.

Loveland, Fort Collins, Greeley and Beyond

To discuss exempt property and all concerns about bankruptcy, call me at 970-663-9138 or e-mail me to arrange your free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.