Keeping Your House and Car in Bankruptcy
Your house: The law provides many options for saving your house from foreclosure. Filing for bankruptcy stops foreclosure immediately. In a Chapter 7, your house will likely be exempt from being seized. If you file for Chapter 13 bankruptcy, you will have three to five years to pay and cure your past-due mortgage payments (“arrears”).
Your car: Bankruptcy stops car repossession. If your car was already repossessed, bankruptcy may help you get it back. Whether you can keep your car permanently depend on your specific circumstances. In a Chapter 7, you may be able to keep your car if you keep up to date on payments or even reaffirm the note with a possible reduction in balance. If you file for Chapter 13, you will likely keep your car and may even qualify for an auto loan cram down.
Other Items You Can Likely Keep
In addition to your car and your house, bankruptcy will generally allow you to keep such property as:
- Household goods and furnishings
- Personal belongings
- Checking and savings accounts
- 401(k) account
- Tools of the trade
- Social Security benefits
- Unemployment compensation
- Welfare benefits
- Other real estate, including rental property
These exemptions are subject to value caps and may change as bankruptcy law evolves. For information about what you can and cannot keep in a bankruptcy, it is important to consult with an experienced bankruptcy lawyer.
For a free initial consultation about filing for bankruptcy with Resnik Hayes Moradi LLP , call (213) 344-0043 or contact us online. Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Sherman Oaks and Los Angeles. Se habla español!
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.