Bankruptcy FAQs

A: Generally, your automobile will be protected if you file for bankruptcy. What does this mean? This means that if you own a vehicle and the value is not greater than the exemption amount over the secured loan, your vehicle will be protected. If your value exceeds the exemption amount, your vehicle can still be protected under the wild card exemption, a buy-out option or a Chapter 13 bankruptcy.

A: Typically, your house can be protected. It depends on the amount of equity of in your home. Bankruptcy law provides exemptions or protections in equity for each debtor. Generally, equity is defined as the value of your asset minus the loan secured by the asset. For example, if you are the sole-owner of a home and the value is $100,000.00 with a mortgage of $50,000.00, you have $50,000.00 of equity in your home. The amount of the exemption depends on your jurisdiction, which is where you live.

A: Generally speaking, bankruptcy law provides protections (known as exemptions in bankruptcy law) of certain assets or items of property that you own. It depends on the specific asset as to whether it is protected or may need to be turned over. Bankruptcy law permits debtors to protect assets based on the necessity of the asset. Note: If there is an asset not qualified for an exemption, it may still be protected. To learn more about specific assets and how to protect assets, please review the questions below or contact us to have your specific questions answered.

A: Yes, there are alternatives to filing for bankruptcy. The alternatives will largely depend upon your personal financial affairs. To discuss viable options, please contact us or call (877) 606-1222.

• Chapter 7
• Chapter 13