Bankruptcy and Your Property
With few exceptions, most people who file bankruptcy are able to keep their property, including their home and car. The real question is often not whether a person can keep their home and car, but whether they should. If your house payments are unreasonable in relation to your budget, they will continue to be unreasonable even after you file bankruptcy, meaning that you will just continue to struggle with debt. The same is true with your car payments. However, if you believe that you will be able to stay current on your bills, you will likely be able to keep your property after filing bankruptcy.
Have you already been threatened with home foreclosure or car repossession? The sooner you contact us at the Arizona Law Group of Trezza & Associates, the sooner our attorney can get started helping you overcome your debt.
Homes and Cars in Chapter 7 and Chapter 13
Chapter 7 bankruptcy and Chapter 13 bankruptcy treat property differently. We will carefully review your situation to determine which type of bankruptcy makes the most sense based on your situation and your goals, answering the questions:
Reaffirming the Debt
While filing bankruptcy may be a good opportunity to let go of your home or car and purchase something that better matches your budget, you can also reaffirm the debt if you believe you will be able to continue making payments on time.
Reaffirming a debt means that you agree to be liable for a debt, even though it could be discharged in your bankruptcy. You agree to not discharge the debt and continue with your payments. If you do not, you will still be responsible for the outstanding debt. You could be subject to repossession or foreclosure even after bankruptcy on debts you have reaffirmed.
Contact Us to Learn More About Keeping Your Home and Car
"Will I lose my home and car?" Our Tucson lawyer can answer that and all other questions. Contact us to discuss your options.
