Will I lose all of my assets if I file for bankruptcy?

Filing for bankruptcy does not necessarily mean that you will lose all of your assets. The answer to this question will depend on the type of bankruptcy you file, as well as the specific assets you own.

In a Chapter 7 bankruptcy, some of your assets may be sold to pay off your debts. However, many types of assets are exempt from sale under federal or state law, which means you may be able to keep them. The specific exemptions available to you will depend on the state where you live and other factors.

In a Chapter 13 bankruptcy, you will not be required to sell any of your assets, but you may need to use your income to repay a portion of your debts over a period of three to five years.

It is important to work with a bankruptcy attorney who can help you understand which of your assets may be at risk in bankruptcy and what steps you can take to protect them. Your attorney can also help you determine whether bankruptcy is the best option for your financial situation.

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