In most Chapter 7 Bankruptcy cases, the debtors keep everything they own. This is because exemption laws protect your basic assets such as your house, your cars, your clothes, your household items, your retirement accounts, etc. However, there are limits. Please call our office and speak with Wendy Durbin about your situation to see if you are at risk of losing anything. Your house and cars are discussed below:

Your House

*If you are current on your mortgage payments, you can "reaffirm" the debt. This means that you can keep your house and continue making your regular mortgage payments.

*If you cannot bring your payments up-to-date, and you have regular income, you may want to consider filing a Chapter 13, which will give you 36-60 months to pay the arrearages.

*If you cannot bring your payments up-to-date, and have no income, the mortgage company probably cannot be stopped from foreclosing on your house. The Chapter 7 Bankruptcy gives you the opportunity to "walk away" from the house and the mortgage with no penalty. This is called "surrendering" the house.

Your Car

*If you owe money on your car, and are current on your payments, you can reaffirm the debt and keep your car.

*If you cannot bring your car payments up-to-date, the auto finance company cannot be stopped from repossessing your car unless you file a Chapter 13 and set up a payment plan. However, if your payments are high enough that you cannot afford them, you should consider surrendering the car back to the creditor.

The Chapter 7 Bankruptcy allows you to do this with no penalty.