Can I Own Anything After Bankruptcy?

bankruptcyYes! So many people think they can not own anything (at least for some period of time) after filing for bankruptcy. This just is not true.

Exempt Property:  Exemptions are an essential part of every bankruptcy filing. You can protect and keep property determined to be “exempt” both during and after bankruptcy. This is typically personal items, such as your car, furniture, or real property used as your home.  Learn more about what property you can keep in a bankruptcy case.

Property obtained after you file: In general, you are allowed to keep any property you obtain after a chapter 7 bankruptcy is filed, (subject to a few important exceptions, noted below). This means you are free to not only protect your exempt property (which, in Texas it usually turns out to be everything you own) but also it means that if you acquire property afterwards, you may keep that property as well (subject to most inheritances within 6 months of filing a chapter 7).  If you file Chapter 13, the rules are much different, and although you usually may keep all your property, the discharge of debt may depend on what you do with any property you acquire after you file chapter 13.   

Exceptions:  There are some notable exceptions, mostly having to do with inheritance. If someone should pass away within 6 months of filing your case, and as a result you become entitled to money or property, then such may be considered property of the estate, and unless exempt, may be claimed by the trustee to pay your creditors.

If you are considering filing bankruptcy and need help understanding your legal options, call the Packard Law Firm. Schedule a free consultation with a board certified bankruptcy attorney right here in San Antonio.