Not if you list all assets and we analyze it before you file! We tell you in advance if you would lose anything, or have too many assets to do a Chapter 7.  You probably will lose things if you don't do a bankruptcy, since bankruptcy can stop all creditor action against you.  You will keep your belongings, car, house, pension and tools.  State law may govern what you can keep, however, and your bankruptcy attorney may need a list of your major assets.

In a bankruptcy, you can keep certain things free from creditors.  You can keep an interest in a house, car, and in money or household goods.  During your initial interview, your attorney will determine if you would lose anything.

Per person property you can keep, if you are in title to it:

Illinois:  $15,000 in home equity or injury proceeds, $4000 in personal property  

Indiana:   $15,000 in home equity , NO injury proceeds, $8,000 in property, no cash

Wisconsin:  $40,000 in home equity total; $8,000 in personal property

All states:  Pensions, IRA's

This is not a complete list, but it shows you can keep home, pension, vehicles and household goods in most cases.  Your attorney must analyze this carefully.

Generally, you keep all your belongings, and get rid of your bills.  No one comes to your house and takes anything.  You keep your house, car, and clothing and furniture.  No one does a bankruptcy to lose anything but their bills.  If you have too much money in the bank, or your property is worth too much, or you have too much disposable income, we may advise you to pay your bills in installments under Chapter 13 in order to avoid losing anything.

You don't have to close your checking account, unless you owe your bank money.  You generally do not lose pensions, although you need specific advice from your lawyer on that.  E.S.O.P plans are different from pensions.

Of course, if you would like to get rid of a car that doesn't run, or one you owe too much money on, you are free to give it back to the creditor.  That is up to you.  If you keep a house or car you owe money on, you have to keep making the payments.

You can also voluntarily pay creditors, such as your relatives, or credit unions, even if they have no collateral.

In Illinois, proceeds from life insurance and workers compensation settlements are exempt, and your portion of an injury settlement up to $15000.00 can be kept free of creditors.

Each case is different, and that is another good reason why most attorneys want you to answer a lot of questions, and give them as much information as possible, so that they can advise you properly.