Full question:
Can I keep my home and automobile if I file bankruptcy?
- Category: Bankruptcy
- Date:
- State: National
Answer:
In a Chapter 7 bankruptcy, the debtor in many cases will be able to retain their home and automobile. Generally, the only way a debtor would lose the home or automobile would be when the debtor is behind in his or her obligation and cannot reach a payment agreement with the creditor, or the home or automobile has equity in excess of the exempt amount.
If either of these two conditions exist, the debtor should consider filing a Chapter 13 petition, which permits the development of a plan for repaying creditors without necessarily liquidating assets.
Although each situation is different, assuming the debtor has little or no equity and is able to continue to pay the mortgage or automobile payment, both should be safe. If equity exists in the debtor's home or auto, Chapter 13 bankruptcy can protect that.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
