What assets can you keep after filing for bankruptcy?
Question Details: My husband and I are considering filing for bankruptcy when we get our tax return. He has a $20k personal loan, around $10k of credit card dept and about $12k in student loans (I realize those do not get discharged). I also have about $10k of credit card debt and $24k in student loans. We are unable to make the all the payments. Additionally, we own our mobile home which is worth roughly $20k. We also own both of our vehicles, about $3k and $2k, repectively. We don't have any thing of real value. I have been researching state law and it seems there is an exemption of up to $20 k per person for mobile homes, so we will be able to keep our home. Will we keep the house and cars? Is this unusual?
State law has no applicability to a bankruptcy filing. The reason is that bankruptcy is under federal law and a filing is in the federal court house. Under federal law, a debtor is usually entitled to retain retirement assets under an IRA or a 401 k, automobiles paid in full worth less than $8,000 per debtor that are used for personal use, one's home if the home is paid in full with no mortgage or trust deed on it and personal items such as clothing, furniture and household wares.
I suggest that you consult further with an actual bankruptcy attorney about your matter for answers to your question with more specificity.