Can I keep my home in bankruptcy?
Yes, homestead (primary residence) is protected in both Chapter 13 and Chapter 7 bankruptcy. Therefore, you may not have to lose your home as a condition of the bankruptcy.
Can I keep paying my car loan in bankruptcy?
Yes, you can reaffirm the car loan in bankruptcy. When a debt is reaffirmed, the borrower voluntarily agrees to pay all or a portion of the money owed. A borrower will usually reaffirm when the debt has collateral the borrower wants to keep.
Will I owe money if I surrender the car in bankruptcy?
If you surrender the property, you are walking away from it and forfeiting it to the bankruptcy trustee. When you surrender property you will no longer be personally liable for the debt connected to that piece of property.
Can I keep my retirement account in bankruptcy?
Yes, retirement accounts are protected in bankruptcy. Regardless if you file Chapter 7 or Chapter 13, retirement accounts are exempt (protected) property. Social security wages are also protected in bankruptcy.
Will I lose my car in bankruptcy?
No, you may be able to keep your car in bankruptcy. Additionally, you may be able to lower the amount you owe on the car loan. In certain situations, you can reduce the car loan down to the current market value of your car. Therefore, if you owe more than what your car is… Read More »
Will I lose assets in Chapter 13 bankruptcy?
No, Chapter 13 is considered a restructuring bankruptcy because the debtor makes payments to their creditors according to a court approved payment plan. On the other hand, Chapter 7 does not involve a payment plan. Instead of making monthly payments, the bankruptcy trustee will liquidate non-exempt assets to pay creditors.
Should I stop paying my bills before filing bankruptcy?
Most unsecured debts are discharged in Chapter 7 bankruptcy. Unsecured debts are loans that don’t have collateral, like credit cards and medical bills. The debts are eligible to be discharged regardless if you are current on the monthly payments or not.