Will I lose possessions like computers or furniture, etc in bankruptcy?

Question

We are thinking of filing chapter 7 bankruptcy. Will be be forced to give up personal possessions such as applicances, furniture, computers, etc in this? Things that are paid for?

Answer 1

In a chapter 7 it all depends on if the items are secured debts or not. If they items were bought via credit card, most likely not. If the say the furniture was purchase from a furniture company and have a loan against it and it's a secured loan and you file bankruptcy on it, they will request it returned. Anything that is secured debt like mortgage, auto loans secured furniture loans, etc...can be re-affirmed in a bk ,after the re-affirmation agreement is signed and then you pay per the norm as usual. The new laws  with chapter 7 and bk's have changed so it's best to consult legal counsel to get your best advice. But..they don't come pounding your door down looking for items in  your home...but...you have to make sure all the debt and items are listed with your attorney. Good Luck!

Answer 2

I don't know personally.  However my father-in-law filed for bankruptcy and nothing was taken from him.  I think he owed close to $100K.