Can I keep my home and automobile if I file bankruptcy?
Full Question:
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.
