Exemptions

• Each state has specific exemptions in regard to what kind of property the court can seize, or take away from you. This means that some of your property, up to certain amounts of value, can be protected during your bankruptcy case. This is why it is very important to disclose to your attorney all of your property, including personal items, cars, furniture, real estate and money.
  
  

Real Estate

• If you own a home and you are behind in your payments, the court can take it away during a Chapter 7 filing. If you own other real estate, such as investment properties, the court can also look at the values and liquidate those properties in order to pay your creditors.
  
  

Personal Property

• The court is probably not interested in your used furniture or clothing, but you should disclose its value to your attorney anyway. But if you have other personal property, such as cars, collectibles, art, cash or anything else of value, the court may be interested in selling it to pay off your creditors.
  
  

Future Lump Sums

• If you are entitled to a large sum of money from a lawsuit, other claim or an inheritance, you should also inform your attorney. Depending on the time frame of your case, the court may be interested in taking the money to satisfy debts.
  
  

Tax Refund

• If you are entitled to a tax refund during your bankruptcy case, the court has a right to take that money, as well. Your attorney will probably ask you about your most recent tax refunds and if you expect to receive one for the coming year.