According to the American Bankruptcy Institute, about 1.6 million people filed for personal bankruptcy in 2010. Sixty five percent of filers chose “income reduction” as a reason for filing. If you file, your FICO credit score will definitely take a hit. For instance, you can expect a reduction of up to 240 points if you have a 780 score and a reduction of up to 150 points for a 680 score.
What and how much someone in bankruptcy keeps depends mostly on where he or she lives. Here are five assets that may be protected in bankruptcy:
- Home: Holding on to your home depends on the state you live and the equity in your home. In general, if the owner has no equity, he/she can keep it as long as payment stays current. For filers with equity, most states have an exemption – money from the trustee sale of the home stays…
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