In most cases, debtors can keep their homes, cars, and other personal property despite filing bankruptcy. Home lenders cannot foreclose on your real property and car lenders cannot repossess your vehicle merely because you filed bankruptcy. However, if you have fallen behind and are in arrears on your home loan, then the lenders can move the court to lift the automatic stay so that they can take back the property.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has created many new rules regarding treatment of vehicles that have not been paid for. Unpaid vehicles must be reaffirmed or redeemed in order for the debtor to keep the vehicle. Please talk to your bankruptcy lawyer about your options.
A Chapter 13 bankruptcy can also provide a way for debtors who are behind on their payments to keep their property.
Those who file bankruptcy in California and have lived in California for 730 days before filing are subject to the state exemptions found in Sections 703 and 704 of the California Code of Civil Procedure. Please call our office in order to find out how this will affect you.