If you file for Chapter 13 bankruptcy, this will not apply to you. Chapter 7 bankruptcy, however, is known as “liquidation” bankruptcy for a reason. It is the most efficient and quickest way to deal with your outstanding debt, but it allows your property to pass into the possession of the courts to be distributed as restitution for your debts. That said, many people are pleasantly surprised to find that though bankruptcy has been filed, they have no problem keeping most or all of their most valued belongings. A knowledgeable Phoenix bankruptcy attorney can help you better understand the intricacies of liquidation bankruptcy and how they impact your individual financial situation.
There are exemption laws that can be enacted to protect certain types of property from being seized or sold during the process of bankruptcy, and many of those are most generous to homes and vehicles. Therefore, it is common for those filing to keep their homes and means of transportation without issue or concern.