I'm often asked if people can keep their house and car if they file bankruptcy. The short answer is usually "Yes", if they keep making the payments.
Someone asked that recently, saying that's the kind they wanted. Sorry, but there isn't a bankruptcy like that. If you don't make the payments on your house or car, bankruptcy or not, you'll lose that house or car.
Are you behind on your car payments and afraid your car will be repoed? Consider bankruptcy!
I hear that often, and my response is always "You must list all of your assets and all of your debts". But then I proceed to explain that it's very likely that they can keep their car. Let's see how and why.
You can keep your car in a Chapter 7 bankruptcy by one of the following ways: (more…)