The decision to declare bankruptcy will probably come after doing everything possible to resolve your financial situation. However, it might become necessary when this is not attainable. While filing bankruptcy might be your lifeline at this difficult time, you should not make hasty decisions because you might find yourself in a worse situation down the line. For example, when you file chapter 7, you might lose some of your assets. When this happens, getting back on your feet might be challenging even after paying your debts. For this reason, consult a lawyer to know the properties you might lose after filing chapter 7 and how to protect them. They will want you to know the following.

You might Lose Your Homes   

When you file for chapter 7, the court will distribute some of your assets to your creditors to clear your debts. In most cases, bankruptcy trustees prioritize the most valuable investments, and your homes might be the first target. However, there's a possibility of keeping your homestead even after declaring bankruptcy. Therefore, you may want to talk to a chapter 7 attorney to know whether this privilege is available in your state laws before declaring bankruptcy.

You might be able to keep the house if it's your primary residence and it's not larger than the recommended size. In addition, you must have owned the house for a certain duration before filing. Your legal advisor will explain all the laws that might affect your situation. They will then assist you in filling out the papers to ensure that you provide the necessary information to enable you to keep your home

You Might Lose Your Vehicle

You may also lose your vehicle after filing chapter 7. However, there are instances when you might be able to keep it even after declaring bankruptcy. For instance, the trustee might not acquire your car if it is worth less than the remaining balance on your automobile loan. Besides, the law provides that debtors can exempt a certain amount in a car after declaring bankruptcy. Such a move can enable you to keep your vehicle, especially if the exempted amount covers your equity. There might also be other provisions in your state, and your lawyer can explain them and advise you on what to do to avoid losing your car after filing.

 There is a possibility of losing some of your personal belongings after filing for chapter 7. However, that might not happen if you work with a legal advisor. They will take advantage of the exemptions in your state laws to ensure that you lose as few assets as possible after declaring bankruptcy.

To learn more, contact a firm like Ozment Law PA.