Are you seeking debt relief but are concerned about losing your home or your vehicle when you file? “Can I keep my house and/or my car in bankruptcy”.
This is the absolute number one question I get when bankruptcy clients come in to discuss their situation with me.
It’s common (and normal) for people who are overwhelmed by debts to worry that they might lose all of their property if they file for bankruptcy protection. The fact is that you are able to keep a significant portion of your property when you file for bankruptcy because of the amount of property we can exempt from the bankruptcy process. Each state has a list of state exemptions that people can claim to exempt different types of property from their bankruptcy estates.
Q: So can I file bankruptcy and keep my house and car?
A: In most cases, yes you can.
My own answer is: absolutely, You’re not going to lose your house or car in bankruptcy.
In a Chapter 7, you’re going to continue making those payments on house or a car. The bank is going to send us what’s called a reaffirmation agreement, and you’re going to sign those and continue to pay. Even if they don’t send you a bill, it’s important to continue to pay to keep those assets.
In a Chapter 13, you’re going to continue to make the house payment but the vehicle payment is going to be through the plan. They’re going to get their money, instead of directly by you, indirectly by the Chapter 13 Trustee.
You do not lose your house or your car in bankruptcy.
Keep in mind – there are exceptions because clients sometimes don’t want to keep a house or don’t want to keep a car.
“Can I stop making payments on the vehicle that I’ve got?” The answer is absolutely yes.
You stop making the payments. The vehicle is voluntarily surrendered or repossessed. It’s going to be a repossession on your credit report, just so you know either situation you do. The vehicle is going to be sold at auction and the deficiency amount, which could be a judgment if you’re sued, is going to be wiped out by the Chapter 7 or the Chapter 13.
The same is for a house. If you don’t want to keep a house, if it’s a money pit, you don’t have to keep the house. You can walk away from your house during your bankruptcy.
Something that I do for my clients is bankruptcy o(r pre-bankruptcy) planning. That is something that’s legitimate. It’s not fraud, it’s disclosed – it’s moral, legal, and ethical – but it is a strategy like a chess game. I do that for every client that retains me.
Many clients ask “Can I Keep My House and Car in Bankruptcy?” and have questions about what assets are protected when filing bankruptcy in Ventura County, CA.
Contact me today to arrange a free confidential consultation with personal Ventura bankruptcy lawyer Eric Ridley.
Ventura Bankruptcy Law Offices of Eric Ridley805-244-5291Click here for your free, friendly, in-depth legal consultation.