Can I Keep My Vacation Home If I File Bankruptcy?
No, as it is typically a nonexempt item. However, if that home happens to be your primary residence, then there is the possibility you can keep it. It all depends on the circumstances of your case, so one answer does not necessarily fit all situations. However, if you have two homes, the second one may be sold to pay creditors.
You should be able to protect property listed in your state’s exemption statutes. If it is not listed, it is nonexempt and likely to be sold to pay creditors. This is one reason Melaragno, Placidi & Parini make sure you know all of your options and what you may face should you choose to declare bankruptcy. There are exceptions to some of the bankruptcy rules, and we can advise you what they are so that you get a clearer picture of what assets you may have liquidated and what assets you may keep.
What you are likely to retain are items needed to work and maintain a home, such as:
- A vehicle
- Household furniture
- Tools you need to work
- Your retirement account(s)
The trustee sells the nonexempt property to pay your creditors and other bills you may have. Priority debts are typically child, spousal support and tax debts. If no priority debts are outstanding or funds are left after those creditors are paid, the unsecured debts are paid. Unsecured debts include utility bills, credit card bills, medical bills and personal loans.
Other Bankruptcy FAQs:
- Are Alimony Debts and Payments Discharged in Bankruptcy?
- Are Income Taxes Dischargeable in Bankruptcy?
- Are My Student Loans Dischargeable in Bankruptcy?
- Can A Creditor Repossess My Car Without Informing Me?
- Can Bankruptcy Help My Credit Score?
- Can Chapter 7 Bankruptcy Save My Home From Foreclosure?
- Can I Convert From a Chapter 13 to a Chapter 7 or From a Chapter 7 to a Chapter 13 in Pennsylvania?
- Can I discharge A Federal Tax Lien?
- Can I File Chapter 7 and Still Keep My Car?
- Can I Keep My Boat If I File A Chapter 7 Bankruptcy?
- Can I Keep My Car After Filing Chapter 13?
- Can I Keep My Vacation Home If I File Bankruptcy?
- Can My Bankruptcy Be Denied?
- Does a Chapter 13 Ruin Your Credit?
- Does Filing Bankruptcy Result in Increased Taxes?
- How Much Does It Cost to Hire a Bankruptcy Lawyer in Pennsylvania?
- How Often Can I File For Bankruptcy in Pennsylvania?
- What Happens to Your Car Loan When You File Chapter 7?
- What to Do If Your Wages Are Garnished in Pennsylvania?
- Will Filing Chapter 7 Hurt My Credit?
- Will I Lose My Retirement Account if I File For Bankruptcy?
- Will The Trustee Come to My House?