Bankruptcy can be a tough path, if you it’s the only path you can take in life.  Sure, there are many that can’t help it because of medical bills, etc, but there are others that just spend beyond control.  Regardless, you’ve probably learned your lesson, and let’s hope that you can control your spending habits in the near future.

When it comes to bankruptcy, you’re probably wondering what you’re going to be able to keep, and what you can’t keep.  First, let’s look at the two different kinds of bankruptcy.

• Chapter 7:  This is where you liquidate your assets.  You’ll give up your property, so that you can pay off creditors.
• Chapter 11:  This is where you’ll reorganize.  This is for those with a large amount of debt.
• Chapter 13:  A plan where the debtor will pay off his/her debts based on the income he/she is earning.

These are the three main chapters that you can file when it comes to bankruptcy.  Now, let’s take a look at what you can keep when it comes down to filing bankruptcy.

Depending on what you file, and where you live, this will factor what you can keep, and what you can’t.  For example, some states will allow you to keep a vehicle up to a certain amount, clothing, some money for rent, etc.

Anything that doesn’t fall into the exemptions, you’re going to find that you’re going to have to either sell it, or give it up to the creditors.  Remember, you owe the creditors money, and you’re going to have to give them money back.  It’s unfair to think that you can just keep everything, declare bankruptcy, and not have to pay for it.  That isn’t fair, is it?

When it comes down to knowing what you can, and can’t keep, try and ask your local law officials, or meet with a bankruptcy lawyer.  He/she will be able to tell you what you need to know when it comes to filing bankruptcy.  In the end, you should feel lucky to keep anything that’s given to you!