When considering filing for bankruptcy it is important to consider what sorts of debts you have and what will happen to them when you file. The two broadest categories of debt are secured debt and unsecured debt. Secured debt differs from unsecured debt as having some sort of collateral that the creditors use as security in case you are unable to pay the debt. Debts of this sort include car loans, where the car itself is the collateral that the creditors can collect in case you are unable to pay off the debt. Unsecured debt includes most other kinds of debt, like credit card debts, medical debts, etc. One thing to keep in mind when filing for bankruptcy is that most unsecured debts will automatically be discharged, but you do have the option to discharge your secured debts usually at the cost of your collateral. If you are worried about losing your property like houses/cars when filing for bankruptcy, one thing to consider is that you are able to exempt a certain value from your property using your bankruptcy exemptions. Alternatively, if you choose to file a chapter 13 bankruptcy, you will have the opportunity to either completely pay back or catch up on your unsecured debts, so that you won’t have to lose that property.
If you have any other questions or concerns about if you'll be able to exempt your property when filing for bankruptcy, it would be to your advantage to set up a consultation with a local bankruptcy attorney.
