Your assets are all of the property that you own. An easy way to determine whether you own a piece of property is to review title to the property. If you are on title to a property, then you have legal ownership.
Additionally, your assets also include property that you still owe money on, such as a house or car. It can also include assets that you have a legal right to receive. This includes tax refunds or proceeds from an insurance policy.
A Chapter 13 bankruptcy allows you to keep all of your property regardless of its value. However, pursuant to the Chapter 13 payment plan, your equity helps determine your plan payment. The attorneys at Tran Bankruptcy Law can help you properly maximize all your exemptions to reduce your plan payment.
Assets Secured by a Debt
To keep your secured assets, you must continue making the payments. However, you can also keep the vehicle, and pay of the debt in the 5 year plan to reduce your monthly bill. For example, instead of paying $500 over the next 2.5 years for a car, you could pay $250 a month over 5 years in the plan.
With regards to a home, you must continue to make the mortgage payment to keep the home. If you have mortgage arrears, you must pay them as well in the Chapter 13 plan.
If you own nonexempt assets, under a Chapter 13, you will be allowed to keep them, unlike a Chapter 7 where the trustee will seize those assets and liquidate them. However, you may be required to pay back your unsecured debts under your Chapter 13 plan, with a minimum amount at least as much as what your unsecured creditors would have received if you had filed a Chapter 7 bankruptcy.