You can lose your domain name if you file bankruptcy.

Yes you can lose your domain if you file for bankruptcy chapter 7. 

I recently decided to fill for bankruptcy chapter 7. This is liquidation of your assets. And yes is a domain name considered an asset.

If the trustees (The person responsible for overseeing your bankruptcy case) determine the name has value, then he or she will try to sell it to pay creditors.

I was shock when my lawyer told me this. I was prepared to give up everything except my domain name. At this time my website was my only means of income. If I lose my domain name I will be out of business. You cannot have a website without a domain name.

I explained this to my lawyer, but he said “the trustee job is to try and get back as much money as possible to pay creditors. If you have nothing, then they get nothing. If your domain name has value then they will try to sell it, regardless of your financial situation.

This is something all of us as website owners should keep in mind.

The more popular your site become is the more valuable your domain name is.       

There are people who will buy it just for the direct traffic and links.