What happens to my assets in bankruptcy?

What happens to my assets if I file for bankruptcy?

When you file for bankruptcy, your assets may be evaluated and categorized. Some assets might be exempt, while others could be sold to pay creditors.

What types of assets are exempt from bankruptcy?

Exempt assets typically include your primary residence, personal belongings, retirement accounts, and a vehicle up to a certain value, but this can vary by state.

Can I keep my house if I file for bankruptcy?

Yes, you may be able to keep your house if it falls under the exemption limits, especially if you continue to make mortgage payments.

What if I have valuable items like jewelry or art?

Valuable items like jewelry or art may not be exempt and could be sold to pay off debts, depending on their value and your state's laws.

How does bankruptcy affect my credit score?

Bankruptcy can significantly impact your credit score, typically lowering it by 100-200 points, and it can remain on your credit report for up to 10 years.