Many people wonder if they can file for bankruptcy without losing their house and car. This can be a loaded question since there are so many different kinds of bankruptcy with a number of different options. The simple answer is YES but with all things in the law its qualified. Typically cars with little or no equity are safe as long as you keep making your car payments. Cars with equity might be at risk, it depends on where you file bankruptcy, what payments you owe on the car and the value and title of the car. There are things you will want to discuss with your lawyer prior to filing your case since your car can be lost if you do not take the necessary steps to protect it. Sometimes its in your best financial interest to just surrender the car back to the lender in a bankruptcy. Your attorney can advise you if that is a good option as well.
Whether you will be able to keep your house or not depends on if you are keeping up with your mortgage payments, if you do not pay you will not be able to keep your house. You want to find an attorney that is very thorough that won’t gamble with your home and you never want to lie to a bankruptcy attorney about your house since the consequences of withholding such information can de devastating to your case depending on what you are attempting to accomplish in your bankruptcy.
A great lawyer will always communicate all of the pros, cons and risks to you in respect to your house and car. Make sure you choose an attorney that will be upfront and answer all your questions all the way thru the process not just when he or she is trying to get their fees from you.