Can I keep my cell phone in Chapter 7?
Asked by: Fleta Mayert | Last update: January 21, 2026Score: 4.4/5 (41 votes)
Because you can list up to $50,000 in personal property exemptions, most clients who file for Chapter 7 bankruptcy find that this amount covers all household goods and electronics they own, including cell phones.
What happens to my phone if I file Chapter 7?
These days, a cell phone is almost a necessity. For many people, it is their only phone. When you file for bankruptcy, if you are up to date on your payments or you can bring your payments up to date, most courts will not have a problem with allowing you to keep your phone.
What can you not do in Chapter 7?
- Lie under oath about your financial or property assets.
- Keep property that must be used to discharge your debts.
- Miss payments to certain creditors in order to keep your home.
What would disqualify me from Chapter 7?
An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors ...
What Cannot be included in a Chapter 7?
While bankruptcy discharge can eliminate many unsecured debts, certain obligations like child support, alimony, most tax debts and student loans are usually ineligible for discharge. In Chapter 7 bankruptcy, discharge often occurs within a few months after the debtor's non-exempt assets are liquidated.
Tracking a phone and reading their messages - this app should be illegal!
When filing Chapter 7 what can you keep?
- Your main vehicle.
- Your home.
- Personal everyday items.
- Retirement accounts, pensions, and 401(k) plans.
- Burial plots.
- Federal benefit programs.
- Health aids.
- Household goods.
What assets can you lose in Chapter 7?
- Vacation properties.
- Investment accounts.
- Stocks and bonds.
- Rental properties.
- Luxury items.
- Valuable artwork.
- Jewelry.
- Antiques.
What would cause Chapter 7 to be denied?
The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; ...
How much disposable income can you have for Chapter 7?
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy.
What do you have to give up in Chapter 7?
- Any secondary residential property that isn't your primary home, such as a vacation house.
- A second car, unless you are filing jointly, in which case each filer can claim an exemption for a car.
- Investments other than retirement accounts.
How much cash can I keep in Chapter 7?
While no specific cash exemption is listed in the federal bankruptcy exemptions, a wildcard exemption allows you to protect up to $1,325 in any property and use up to $12,575 of any unused portion of a homestead exemption to protect money.
Where do they stop for gas in Chapter 7?
Stopping for gas at Wilson's garage, Nick, Tom, and Jordan learn that Wilson has discovered his wife's infidelity—though not the identity of her lover—and plans to move her to the West.
What happens to your bank account when you file Chapter 7?
Most people who file Chapter 7 bankruptcy can keep their checking account if the money in it is protected by exemptions. This means your account balance is safe, as long as it doesn't exceed the amount you're allowed to protect under bankruptcy law.
What is the downside of Chapter 7?
Not everyone is eligible to file Chapter 7. Your credit score might take a hit. Some debts can't be erased in Chapter 7. If you have non-exempt property, you might lose it.
Will they take my tax return if I file Chapter 7?
The good news is that you only lose the tax refund once, since any refund on income earned after a Chapter 7 bankruptcy belongs to you.
Do you have to sell everything in Chapter 7?
Most people who file for Chapter 7 bankruptcy will be able to keep all of their personal property thanks to their state or federal bankruptcy exemptions. Filing for Chapter 7 bankruptcy can help you eliminate overwhelming debt and give you a fresh financial start.
How much debt should you have to file Chapter 7?
There is no minimum amount of debt required to file for either Chapter 7 or Chapter 13 bankruptcy. However, many bankruptcy attorneys advise against filing for bankruptcy if you have less than $10,000 in dischargeable debt because the legal fees and filing costs could outweigh any potential benefits of filing.
Can I spend money while on Chapter 7?
Spending Money While You're in Chapter 7
You should not spend any money or dispose of any assets you own when you file your Chapter 7 bankruptcy case. Without court approval, the Chapter 7 Trustee can force the recipient to return the money or property.
What if I get a bonus during Chapter 7?
If you file for Chapter 7 bankruptcy (when you don't repay most of the companies you owe) and you get your bonus check within six months before you file, you might not get to keep it. The trustee in your case averages all of your income within six months before filing, which can include bonus checks.
What would disqualify me from filing Chapter 7?
Previous Discharge
For example, you cannot receive a Chapter 7 bankruptcy discharge if you have received a previous Chapter 7 discharge in the last eight years. Likewise, you cannot receive a Chapter 7 discharge if you received a Chapter 13 discharge in the previous six years.
How long can I stay in my home after filing Chapter 7?
Depending upon where you live, you may be able to remain in your home for six months or more after your Chapter 7 bankruptcy has been finalized. Once your bankruptcy is discharged, you will need to find another place to live. However, you may not need to leave your house immediately.
Can you spend money after a 341 meeting?
Can You Spend Money After 341 Meeting? If your trustee abandoned all the assets during the 341 hearing, the money and income after the meeting is yours to spend. However, it is important to be sure about the outcome of your case before spending the money.
What is the best state to file for Chapter 7?
Texas is one of the best states in which to file bankruptcy. Texas exemption laws are favorable to debtors for a number of reasons.
Can I go on vacation after filing Chapter 7?
Yes, you and your family can take a vacation.
Can I lose my house in Chapter 7?
Unless you have excessive equity in your home or are behind on the payments, the Chapter 7 bankruptcy will allow you to keep your home through the bankruptcy process.