Chicago Bankruptcy Attorney and Redeeming Property after Bankruptcy

Many people believe that when someone files for bankruptcy they get to keep everything they bought free and clear and then they walk away from any and all obligations. This is may not be true. A Chicago bankruptcy attorney will explain that you do stand the chance of losing some of your property and assets when you file for bankruptcy, but the good news is you may be able to redeem some of it.

Chicago Bankruptcy Attorney and How Property is Seized in Bankruptcy

People that file for bankruptcy with a Chicago bankruptcy lawyer face losing their property in a couple different ways. The bankruptcy court may decide that some of your assets should be sold and the proceeds should be given to your creditors. Also, the creditors themselves can request that the items you purchased from them and have yet to pay for entirely be returned to them.

Chicago Bankruptcy Lawyer and Redeeming Property

As we stated, you may lose some of your property during a bankruptcy, but you may be able to buy them back. This may seem counter intuitive since you didn't have the money to buy the items in the first place. After all, you filed bankruptcy because you couldn't pay your bills and now you may have to buy back some of the property. However, you don't have to buy back property at its full value, you don't even have to pay what you still owe the creditor. What you will have to pay is the property's current fair market value.

There are restrictions on when you can buy the items back, but typically you must be able to purchase them by paying a lump sum in full within 30 days of your 341 meeting. Your Chicago bankruptcy attorney will be able to help you through redeeming any property in a bankruptcy.