Can You Keep Your House and Car When Filing Bankruptcy?
For over 25 years, I represented debtors in over 4,000 consumer bankruptcy cases, helping individuals navigate Chapter 7 and Chapter 13 bankruptcies. Now, as an attorney representing creditors in Texas, I understand the concerns both debtors and creditors have regarding bankruptcy and its impact on assets, particularly valuable assets like homes and vehicles. If you’re worried about losing your house or car, it’s time to learn the truth about bankruptcy.
Truth About Keeping Your Home and Vehicle in Bankruptcy
One common fear many people have when considering bankruptcy is the idea that they’ll lose their house, car, or other important assets. However, this is not necessarily the case. Bankruptcy can actually help protect these assets under the right circumstances.
Chapter 7 and Chapter 13 Bankruptcy Options:
- Chapter 7 allows for the discharge of debts, and if you qualify for exemptions under Texas law, you can keep your home and car.
- Chapter 13 allows you to restructure your debts and catch up on missed payments. This can stop foreclosure and prevent repossession, giving you the time to pay off debts in a more manageable way.
In fact, bankruptcy can even help you get a repossessed car back if you’re struggling to make payments and have fallen behind.
Bankruptcy Isn’t Just for the Unemployed
Another misconception is that bankruptcy is only for the unemployed or people who have no income. This isn’t true. People from all walks of life, including those with steady employment or even substantial income, file for bankruptcy every day. What matters is not your job status but whether you can meet your financial obligations.
The three biggest causes of bankruptcy in the U.S. are medical bills, job loss, and divorce. Even individuals with good jobs may find themselves overwhelmed by debt, unable to keep up with payments. Bankruptcy offers a way to regain control over your financial future, no matter your employment situation.
Why Bankruptcy Can Help You
Bankruptcy can help in many ways. It allows you to stop foreclosure, prevent vehicle repossession, and provide a structured way to deal with overwhelming debt. You don’t have to face these issues alone—bankruptcy may be the solution to get you back on track.
If you’re a creditor, it’s important to understand that bankruptcy also impacts how debts are repaid. As someone who now represents creditors seeking recovery from Texas debtors, I can help guide you through the process of filing claims to ensure you get the repayment you’re owed.
