Do I Have to Include My Car and MY House In MY Bankruptcy?

by Bankruptcy Law Network (BLN)

July 28, 2009

This question is asked more times in my bankruptcy office than I can count.  I am sorry to say that you do have to include your car, your House, your wedding ring and all your other property in your bankruptcy.

My clients then tell me their friend didn’t include their car or their house.   I’d be willing to bet they  did not understand what they did.   All property must be disclosed in your bankruptcy.

This does not mean you lose any of your property.  Bankruptcy law requires you to list all of your property in your bankruptcy papers. Don’t worry you won’t  lose everything.

Bankruptcy law was not designed to leave you naked and homeless when you are done.  The bankruptcy laws are designed to give you a fresh start on your life.  Most people are able to keep their house, their cars and most of their possessions.

Exemptions are the part of the law that lets you keep your stuff.  Exemptions are different in each state. In Ohio you are allowed to keep up to $10000.00 worth of household good. It is very rare that I have had any clients whose household goods are worth even close to $10000.00  It is important to review this with bankruptcy lawyer in your state.

If you are behind in your car or house payment Chapter 13 maybe needed to save those assets.  In a Chapter 13 you catch up back payments on your house and your car.  If you are current you maybe to keep the car and house and keep by paying for them through the Chapter 13 plan and over time.

The key to a successful bankruptcy is to remember to disclose all of your assets to your lawyer.  Your lawyer can then figure out if you to keep the asset.  Your lawyer can then determine what you need to do to protect that asset.  So disclose, disclose, disclose………

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Last modified: July 28, 2009