Chapter 13 bankruptcies do not require the liquidation of property as Chapter 7 bankruptcies do when property is unable to be exempted. Instead, Chapter 13 bankruptcies are “funded” by the monthly payments filing debtors make to their Chapter 13 Plans. Personal and real property is not subject to liquidation (seizing and selling off of property by the Trustee assigned to a Chapter 7 case by the court) in a Chapter 13 at all.
That does not mean, however, that it is always possible to retain a second home or second piece of real estate in a Chapter 13, particularly if it is a home for which you are making mortgage or other payments.
If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or email@example.com to schedule a free, initial consultation.