Can I keep my house and car if I file bankruptcy?

Can I keep my house and car if I file bankruptcy?

If I file for bankruptcy, can I keep my property? If you file for Chapter 13 bankruptcy, the answer is yes. In exchange, you may keep your property (including your car and home), assuming you keep up with payments on any loans secured by the property — and keep making your repayment plan payments.

What do I lose if I file bankruptcy?

You won’t lose all of your property when you file for bankruptcy. Bankruptcy law allows you to “exempt,” or take out of the bankruptcy estate, the things you need to maintain a home and job, such as household furnishings, clothing, and an inexpensive car.

Will I lose my car and house in Chapter 7?

You Must List All Debts and Assets When You File Bankruptcy. By applying bankruptcy exemption laws to their lists of assets, most people filing Chapter 7 bankruptcy are able to keep their houses and cars if: Their budgets enable them to keep up with a mortgage and car loan payments.

What assets can I keep in Chapter 7?

Property That Is Exempt

• Motor vehicles, up to a certain value.
• Reasonably necessary clothing.
• Reasonably necessary household goods and furnishings.
• Household appliances.
• Jewelry, up to a certain value.
• Pensions.
• A portion of equity in the debtor’s home.
• Tools of the debtor’s trade or profession, up to a certain value.

Can I keep 2 cars in Chapter 7?

In some cases, you can keep two cars when you file for Chapter 7 bankruptcy. But you’ll need to be able to protect all of your vehicle equity using a bankruptcy exemption.

What debts are not dischargeable in Chapter 7?

Debts Never Discharged in Bankruptcy

• Alimony and child support.
• Certain unpaid taxes, such as tax liens.
• Debts for willful and malicious injury to another person or property.
• Debts for death or personal injury caused by the debtor’s operation of a motor vehicle while intoxicated from alcohol or other substances.

What can I spend money on before filing Chapter 7?

In general, you can engage in a certain amount of exemption planning before filing your case, but it must be reasonable and in good faith. For example, if you have too much cash in your bank account, you can typically spend it on food, rent, gas, car maintenance, or other necessities before filing for bankruptcy.

What can you not do before filing Chapter 7?

Mistakes to Avoid Before a Chapter 7 Bankruptcy Filing

• Avoid Transferring Assets Before Filing for Chapter 7 Bankruptcy.
• Avoid Favoring Creditors Before a Bankruptcy Filing.
• Avoid Making Credit Card Purchases Before a Chapter 7 Filing.
• Avoid Depositing Unusual Amounts Before Filing Bankruptcy.

Does Chapter 7 wipe out all debt?

Chapter 7 bankruptcy wipes out most types of unsecured debt. Unsecured debts are debts that aren’t guaranteed by collateral property. Unsecured debts wiped out by Chapter 7 bankruptcy include credit card debt, medical bills, and gasoline card debt. However, you can’t wipe out all unsecured debt.

Can the IRS take my tax refund if I filed Chapter 13?

Tax Refunds in Chapter 13 Bankruptcy You’re required to contribute all disposable income to your Chapter 13 plan. If your plan pays less than 100% to creditors, the trustee can keep your tax refund. It won’t reduce your plan payment, however.