If I file for bankruptcy will I loose all my assets?
The short answer is: it depends, but there are many factors at play. So read on. The type of bankruptcy you file has a lot to do with protecting your assets. I am going to discuss these questions in both context of a chapter 7 and chapter 13 bankruptcy.
In a chapter 7 bankruptcy, also called liquidation bankruptcy, your unexmpted assets are subject to liquidation by the Trustee. It is the trustee's job to liquidate your assets that are not exempted or protected. Please see my discussion on exemptions under the bankruptcy code. So, if you have assets that are not exemptable, then those can be liquidated. For example, in Georgia law provides $10,000 in homestead exemption for a single person or $20,000 for a married couple. This means that if you are single and own your residence and you have more than the $10,000 in equity, then any equity you may have above and beyond $10,000 is not exempted and subject to possible liquidation in a Chapter 7 bankruptcy.