A common bankruptcy myth is that you must give up all of your property if you file for bankruptcy. In fact, many people who file for bankruptcy are able to keep everything they own while enjoying protecting from creditors and debt relief.
If you have questions about what you can keep in a bankruptcy, the attorneys at Simon & Resnik, LLP, are here to provide answers. We have helped numerous clients throughout the Los Angeles area achieve debt relief while keeping their property.
Call 888.368.4099 or contact us online for a free consultation with a California bankruptcy lawyer. It could be your first step on the road to debt relief.
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
- Pension
- 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.
Contact Us
For a free initial consultation about filing for bankruptcy with Simon & Resnik, LLP, call 888.368.4099 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.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
