Will I lose my house and car if I file bankruptcy?

Will I lose my house and car if I file bankruptcy?

Filing for bankruptcy does not relieve you of secured debts unless you agree to surrender the property that serves as collateral for the loan. Consequently, victims of bankruptcy can only keep their house and car if they can still afford to make the monthly payments on the loans.

Is your house protected in bankruptcy?

Luckily, bankruptcy law protects some of your property from the reach of the creditor through bankruptcy exemptions. If the equity in your property is entirely exempt, the trustee can’t take it. To determine how much equity you have in your home, subtract all mortgages and liens from your home’s current market value.

Does filing bankruptcy get rid of credit card debt?

Chapter 7 bankruptcy erases most unsecured debts, that is, debts without collateral, like medical bills, credit card debt and personal loans. However, some forms of debt, such as back taxes, court judgments, alimony and child support, and student loans generally aren’t eligible.

Should I stop paying my bills before bankruptcy?

Similar to credit cards, paying your medical bills prior to filing for bankruptcy will be a waste of time—and money. Alimony and child support. Domestic support obligations such as alimony and child support are nondischargeable in bankruptcy. You can’t wipe out your obligation to pay these debts through bankruptcy.

Can you rent an apartment after filing for bankruptcy?

Most people will qualify for a rental within three months of a bankruptcy discharge. It is possible to rent or lease after bankruptcy–and depending on how you handle your fresh start, it may even be possible to become a homeowner again without waiting seven years.

Will my landlord know I filed bankruptcy?

If you are on a month-to-month rental agreement, then the landlord doesn’t have to know that you filed or be notified. Your landlord will be notified of your case, but it should not affect your lease. To learn more about how leases are handled in a Chapter 7 bankruptcy, check out our Guide to Leases in Bankruptcy.

Does bankruptcy affect renting?

Whether or not you filed for bankruptcy does not necessarily affect your ability to pay your rent, but the amount of income you have to put toward your rent does. If you’re earning enough to pay your rent, a landlord is less likely to consider your bankruptcy, especially if your income has increased since you filed.

Can you rent after filing Chapter 7?

Whether the bankruptcy filing was under Chapter 7, 11, or 13, the landlord is entitled to rent accrued after the filing. A landlord may also be entitled to recover rent or other amounts that became due before the bankruptcy was filed.