If your bills are piling up and paying them seems impossible, you may be considering filing for bankruptcy to ease the financial distress you are under. Before you begin the process of filing, however, you should understand that not all debts are dischargeable. If your property is not exempt, it may be subject to foreclosure during bankruptcy proceedings. Continue reading to learn more.
What Happens to Property During a Bankruptcy?
In a Chapter 7 bankruptcy, property will be liquidated and sold unless it is considered exempt.
Below is a partial list of exempt property:
- Tools of The Trade $10000
- A motor vehicle with up to $10000 equity
- Your pension
- Certain types of personal property
- Your home with up to $175,000 of equity
If your property is not fully secured or exempt, it will be liquidated in a foreclosure sale.
In Idaho, when you file a bankruptcy petition, you will receive an automatic stay. An automatic stay puts a stop to collection attempts, including collection calls, lawsuits, and foreclosure proceedings, making this a very effective tool for those who need time to avoid losing property to foreclosure.
During this time, you can take advantage of the automatic stay by:
- Raising the money you need to pay off your mortgage
- Working out a modified mortgage agreement with the bank
- Finding someone who will buy the property
If you are planning to file for bankruptcy, do not hesitate to seek skilled legal counsel to assist you with the process and ensure it goes as smoothly as possible.
Discuss the Details of Your Bankruptcy Case with One of Our Experienced Attorneys Today!
If you cannot pay off your debts and want to wipe the financial slate clean, the experienced legal team at Avery Law can provide the guidance and advice you need. Our attorneys have more than 65 years of combined experience and are backed by a history of proven results. We are the only law firm in Idaho enrolling debtors in the premiere 720 Credit Score program. Our team understands the difficulties you must be facing and will do what we can to support you throughout this process. Let us help you pursue the fresh financial start you deserve.
Reach out to our law office today at (208) 285-2085 to set up a free initial case review with one of our attorneys to get started.
You will not have to pay us until your case is filed!