Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Bankruptcy Terms To Know: Asset

An asset is anything of value that is owned by an individual or by a company. Examples of assets include: property, money savings, vehicles, boats, insurance policies, jewelry, and stocks. While some assets must be liquidated during bankruptcy, some assets are exempt. There are a number of differences between exempt assets depending on which state you declare bankruptcy in, and depending on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

In Chapter 7 bankruptcy, your unsecured debts (such as medical bills and credit card bills) are discharged, but your non-exempt assets are liquefied. In Chapter 13 bankruptcy, you are able to keep your assets and your debt is re-organized into a manageable plan. Chapter 13 bankruptcy makes it much more possible to keep assets such as your home, land, and car, but also does not wipe away debt in the same way that Chapter 7 does - your creditors have to be paid back over a number of years with the majority of your disposable income.