After hiring a bankruptcy lawyer, one of the first and most common questions
people ask is, “Will I lose my house and my car?” The concern
is validated, as a home and an automobile are surely the most prized and
important assets the average person possesses. There are also plenty of
stories out there about how
bankruptcy lets creditors kick people out of house and home, leaving them on the
street with nothing to their name. So what is the truth about bankruptcy and
While there may be the occasional case where someone is in such an unpayable
debt that they lose all of their prized collateral property, there are
certainly many exceptions to this outcome.
Chapter 13 bankruptcy in particular is a great tool for avoiding or undoing vehicle repossessions.
By setting up an adjusted repayment plan, you may be able to pay the actual
value of the car instead of what you still owe. If your petition for bankruptcy
is accepted, the creditor that repossessed your vehicle may even be ordered
to return it to you.
Protecting Property in Chapter 7
If you use
Chapter 7 bankruptcy instead of Chapter 13, you do run an increased risk of losing your home
and automobile. But, once again, it is not a guaranteed necessity. Chapter
7 will discharge great portions of your unsecured debt, if not all of
it, and perhaps even some of your secured debt. Any remaining secured
debt may be wiped out in exchange for collateral property, such as houses
and cars. But with a bankruptcy attorney on your side, you may be able
to negotiate for other pieces of collateral to be collected first. It
could also be possible to lose nothing at all based on your unique financial
If you live in southeastern Texas and need help with bankruptcy or are
worried that you could lose your home or vehicle, talk to Maida Law Firm,
P.C. about your legal options. Our Beaumont and Houston bankruptcy attorney
is a Board Certified® Bankruptcy Law Specialist, a title held by less
than 10% of all attorneys in the state.
Contact our law office today to learn how our experience and knowledge can work to your benefit
in your bankruptcy case.