Protecting Property With Exemptions in Chapter 13 Bankruptcy Bankruptcy exemptions allow you to protect property such as household goods, some equity in a house and car, and a qualified retirement account.

Can you give up your house in a Chapter 13?

While it’s possible to surrender the house through your Chapter 13 case, some jurisdictions allow surrender only before your Chapter 13 bankruptcy payment plan is confirmed (approved) by the bankruptcy court.

How do I protect my inheritance from Chapter 13?

In most states, an inheritance is not considered exempt property. Therefore, in your Chapter 13 plan you would have to make sure that the total amount of your repayment at least equals the value of the inheritance.

Can a chapter 13 bankruptcy allow me to keep my property?

This means that if you have a lot of nonexempt equity in your home, reorganizing your debts in Chapter 13 bankruptcy will typically be a better option for you than filing for Chapter 7 bankruptcy. For more information on how you can keep your property in Chapter 13 bankruptcy, see Will Chapter 13 Debt Reorganization Allow Me to Keep My Property?

When do you have to sell your house in Chapter 13?

Federal Rules of Bankruptcy Procedure 6003 provides that the bankruptcy court cannot issue an order granting a motion to sell property within 21 days after the date that you file your Chapter 13 case.

What happens to exempt property when you file bankruptcy?

You’ll get to keep exempt property without cost, no matter which bankruptcy type you file. However, what happens to your nonexempt property—the property not covered by an exemption—will depend on the bankruptcy chapter. Chapter 7 bankruptcy.

What do you have to pay in Chapter 13 bankruptcy?

In your Chapter 13 plan, you’re required to pay off certain debts in full. These include mortgage arrears and priority debts such as certain taxes. However, the amount you pay your general unsecured creditors (such as credit card companies) depends on your income, expenses, and nonexempt property.