Will I lose my house or car if I file for bankrupty relief?

Posted On : November 13, 2013   By : RobG

In most cases, filing bankruptcy will not cause you to lose your home, car or other assets. When you file bankruptcy, the issue is what the Trustee is required to sell or liquidate to pay your creditors what they are entitled to. In Maryland, you are allowed to exempt (protect) up to $12,000 of equity in your assets. So, if you owe more than your home or vehicle is worth, there is no equity to protect and, since a sale of those assets would result in no proceeds for your creditors, the Trustee has no interest in selling such assets. If there is some equity in you assets, then it depends on how much equity, how the assets are titled, and other factors that are best evaluated by an experienced bankruptcy attorney. In many cases, some equity is not a problem and, where it is a problem for Chapter 7 relief, it may be very solvable in a Chapter 13. If you assume that you won’t qualify for bankruptcy relief and don’t invest in a comprehensive Rights and Options Consultation with an experienced bankruptcy attorney you could be making a huge mistake! The first step is to find out what you need to know so that you can make an informed decision.

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