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We own a property free and clear, when filing chapter 13 do we get to keep that or does the trustee take it?`

Greeley, CO |

We own property free and clear worth about 45,000.00. and several ATVs and a camper . We've been trying to sell them for the last year to help pay down some debt, but have not been able to. If we file chapter 13 bankruptcy do we keep those or does the trustee take them?

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Attorney answers 2


Generally assets are lost in Chapter 7 but not in Chapter 13. However, Chapter 13 is a 3-5 year slog and Chapter 7 is over quickly and you get on with your life. It may be worth it to lose the assets. In Chapter 7 bankruptcy liquidation, everything sells at some price or other--you may be asking too much.


Generally speaking, if you file a Ch. 13, you would get to keep the property. If you are making payments on the ATVs and camper, you would need to be current with payments going through the bankruptcy (3-5 years) and you would be able to make up any arrears through the plan. This assumes you have the ability to make reasonable payments on a Ch. 13 plan over time.

However, if you do not intend to keep the ATVs or camper, you should speak to a bankruptcy attorney to determine if you would qualify for a Ch. 7. Under a Ch. 7, your property (assuming this is a primary residence) would be exempt and you would be able to keep it, but you would likely lose the ATVs and camper.

Bottom line, you should speak to a bankruptcy attorney about your options and whether filing for bankruptcy is the best option for you under the circumstances. Many bankruptcy attorneys will offer a free initial consultation.