If you are considering bankruptcy, there’s a good chance that one of your biggest concerns is about your personal property. No matter how much financial trouble you’re in, it’s natural to want to hold on to cherished assets. The good news is that in the state of Pennsylvania, there’s a good chance you won’t have to sell your belongings.

Though most people think that filing for bankruptcy means you’re going to have to put your home, car, jewelry, and other assets up for auction, the truth is that bankruptcy asset sales rarely happen. This is because of Chapter 7 and Chapter 13 bankruptcy exemptions. The trustee overseeing your bankruptcy will be unable to seize any assets that are non-exempt. This is just one of the reasons that it is so important that you seek guidance from an experienced bankruptcy attorney who will know how to exempt the things that are most important to you.

Our experienced lawyers will be able to determine whether federal or state protections are most advantageous for you, as well as whether you will meet the means test to file under Chapter 7 or will need to file Chapter 13. There are advantages to each option. Though many people choose to use the federal homestead exemption, those whose assets exceed allowable exemptions can also choose to classify their property as nonexempt. Under a Chapter 13 bankruptcy, this would mean that you would pay the bankruptcy plan the monies owed to cover the property and do so over a three-to-five-year period while maintaining ownership of the property.

If you qualify for a Chapter 7 bankruptcy and want to retain ownership of a vacation home that exceeds the allowable exemptions, the trustee could theoretically put the property up for sale in order to satisfy your debts to your creditors. But selling property is an expensive and time-consuming process that rarely raises enough money to justify the effort. In almost all cases the trustee is unlikely to take this action and will instead abandon the property, leaving it in the debtor’s possession.

Every bankruptcy situation is unique. The best way to get the answers to all of your questions is to make an appointment with one of our experienced bankruptcy attorneys. Contact us today to set up a confidential consultation.