March 23, 2018

Will I lose my home or car if I file bankruptcy?

In a Chapter 7, if you want to keep your home or car, you must be current on your mortgage and car payments. If your equity in the property is fully exempt, then you may keep your home or car as long as you continue to make the monthly payments required. In reality, equity is measured after accounting for the cost of sale (e.g., realtors and fix up costs). If you are not current on your home or car payments, or if you have too much equity, you may still be able to keep your car and home by filing a Chapter 13. On the other hand, if you wish to surrender your car or home, you may do so without being liable for any more money.

I hope I have answered some of your questions. If you would like more information or wish to set up a free initial consultation with me, you may call one of our offices at the numbers noted above.