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Will You Lose Your Car or Home in a Bankruptcy?

bankruptcyhouseIt’s never an easy decision to file for bankruptcy. For a number of people however, the major concern is whether or not they will be able to keep the items that are most valuable to them, generally their car and their home.

In South Florida, a car is practically a necessity, and not having one means potentially going deeper into debt in order to make it to work every day. A home is priceless, and trying to find the money for a deposit or down payment on a new place is practically impossible, especially in the middle of a bankruptcy.

What you can and cannot keep will depend heavily on whether you file for Chapter 7 or Chapter 13 bankruptcy, the latter option typically allows for a greater number of exemptions. A Chapter 7 bankruptcy may also allow you to keep your car and your home, but this will depend on several factors.

If the amount of money you owe on your car is greater than it’s worth or you haven’t made many payments, your car may not be considered an asset worth seizing during bankruptcy proceedings. A bankruptcy attorney will be able to explain to you what you can expect. Do keep in mind that keeping your car will still require making the monthly payments. Should you fail to keep up with payments, your car can still be repossessed.

Your home is a more complex matter that, again, a bankruptcy attorney can help you out with. Similar to your car, the amount of equity will be factored in. If the home is fully owned or you have significant equity built into it speak to a bankruptcy attorney about how you can protect your homestead.

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more.  Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney.  We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.