When You Can Keep Your Car AND House In Bankruptcy

The answer to this question is really quite simple for any good bankruptcy lawyer. Where things get complicated is when you go see a New Jersey Bankruptcy Lawyer and your property is in New York. Luckily, Waltzer Law Group has New Jersey Bankruptcy Lawyers, New York Bankruptcy Lawyers, California Bankruptcy Lawyers and lawyers in many states. This way, we can always answer your questions.

Keeping Your Car:

Cars with no equity: you owe more on the car loan than the value of the car) Your car is safe long as you keep making car payments. There are a few exceptions that your bankruptcy lawyer will explain.

Cars with equity: if your car is worth more than what you owe on it, or you own the car free and clear, without loans. IMPORTANT: If your car has equity, you need a bankruptcy attorney to help you protect your car.

Your car might not be safe. Whether it is safe depends on the value of the car, the title of the car AND most importantly, the state where you file bankruptcy.

For instance in New York Bankruptcy Law, the Bankruptcy Exemptions only allow you to have $2400 of equity per debtor on title! The New Jersey Bankruptcy Law has exemptions that protect a lot more equity.

Keeping Your House:

Rule Number One
The number one rule for keeping your house has nothing to do with bankruptcy.

The number one rule is that you can only keep your house if you stay current with your mortgage or modified mortgage. Bankruptcy or no bankruptcy, if you don’t keep up with payments you will lose your house.

There are a lot of scams out there promising people that they can keep their homes without paying for them. Forget it.

Rule Number Two
Never Lie To Your Bankruptcy Attorney About Your House and Who Owns It and Any Transfers or Refinances You Have Done.

Rule Number Three Make sure you have a GREAT bankruptcy attorney who is very thorough. If you don’t have a really thorough bankruptcy attorney, you might lose your house in bankruptcy. If your attorney is great, he or she will NEVER gamble with your house and you he will not file your case unless he can save your house. A good bankruptcy lawyer will always identify and communicate the risks to you.

Bankruptcy Exemptions: If your house has equity, you will have to ask your attorney about exemptions in your state. It would be irresponsible of me to pretend that this could be explained on a website. For something this important, you must have a consultation with an attorney. Waltzer Law Group offers free consultations and we are knowledgeable about all the bankruptcy exemptions including the homestead exemptions in New York, homestead exemptions in New Jersey and Homestead Exemptions in California.