Can I keep my car and house if I file chapter 7? - Bankruptcy Law Questions and Answers- LawQA.com

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Can I keep my car and house if I file chapter 7?

My home is paid for in full (used to be my parents home), I owe $3k on my roughly $15k car.

Mauritz Van Niekerk, Attorneys at Law
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There are exceptions new York that differ for each county. You need to consult a lawyer that can for free give an initial consultation. It is very possible you can keep everything.

Answer Applies to: New York
Replied: 7/24/2011

Robert Peters, P.A.
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The general rule is that Florida homestead law protects your home from the claims of creditors. There are exceptions so talk to an attorney. The status of your car is more complicated. It depends on who owns your car. For example if you own it with your wife and its titled as husband and wife and your wife is not filing it is an exempt asset as it is owned by the marital entiity. If you own it or you own it with your wife then you will likely have to enter into a buy back with the trustee to keep it. You need to consult with an attorney. My book is attached which may be of some assistance.

Answer Applies to: Florida
Replied: 7/22/2011

Mercado & Hartung, PLLC
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You can likely use property exemptions to protect your car and home

Answer Applies to: Washington
Replied: 7/21/2011

Rosenberg & Press
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It is unlikely that you have enough exemptions to cover the car and home. You can exempt roughly $75,000.00 of your home's equity and approximately and about $3,500 of your car equity. If you own more equity than this you can try to apply the wildcard but otherwise you should not file.

Answer Applies to: Connecticut
Replied: 7/21/2011

Answer By Michael A. Cox
Guerrieri & Cox
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If your house is worth around $21,625 (your homestead exemption in Ohio) per owner who resides in the house, then you could likely keep the house. Otherwise, the trustee could seek to sell your house to pay creditors with the non-exempt proceeds from the sale. Your car would need further evaluation too because you can perhaps exempt $4,600 (a wildcard exemption of $1,150 plus auto exemption of $3,450) for the car, and the non-exempt value of the car likely could result in the trustee taking the vehicle.

Answer Applies to: Ohio
Replied: 7/21/2011

Answer By Edward Port
The Port Law Firm
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In determining if you can keep your home in a chapter 7 it all depends on when you received ownership, and how long you have lived in Florida. Also, Florida only allows you to protect $1,000 in a vehicle. In your example, $14,000 would be unprotected and a Trustee ion a chapter 7 may request turnover of the vehicle. Depending on your circumstances you may consider filing a chapter 13 bankruptcy wherein you may be able to keep your car. My advice is to visit with an attorney who will sit with you and advise you specifically. Sincerely, Edward N. Port DISCLAIMER The information in this reply does not constitute legal advice and should not be relied upon for any bankruptcy planning purposes. Bankruptcy planning is necessarily very circumstance-specific and therefore the reply is only intended to educate. Additionally, the information given in this reply is not meant to be a substitute for legal representation. You should consult with a local attorney regarding your suitability for the information stated herein under your local laws. The Port Law Firm, PA shall not be considered your attorneys until a fully-executed client retainer agreement is executed. Further, any tax consequences that may incur in the implementation of the strategies herein should be reviewed by an independent professional tax advisor. Nothing in this reply should be construed to be any advertisement for legal services directed to a state wherein The Port Law Firm, PA is not admitted to practice. Nothing in this reply is any substitute for the services of a licensed attorney in the relevant jurisdiction. The Port Law Firm, PA does not practice in any jurisdiction unless one of its attorneys has been admitted to practice there, or an attorney of the firm has been properly admitted pro hac vice according to the local court rules of that state.

Answer Applies to: Florida
Replied: 7/21/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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In Colorado, most debtors keep their house and cars after filing chapter 7 bankrupty, but your case is likely to have problems. As to your home, it all depends on the value of your home. Colorado exemption law allows for a $60,000 exemption for a homestead ($90,000 if you are elderly or disabled). As to your car, Colorado exemption law generally allows a $5000 exemption ($10,000 if elderly or disabled), but this amount may be doubled if car is kept and used by debtor and spouse. Car may also qualify as tool of trade with a larger exemption. If you have significant excess equity beyond the exemption amounts in your house or car, chapter 13 bankruptcy may be your only option in keeping these assets in bankrupty.

Answer Applies to: Colorado
Replied: 7/21/2011

Answer By Harry L Styron
Law Office of Harry L Styron
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It depends on how old you are, whether you are married and how much the house is worth. If single and less than 65 the equity in the house is exempt up to $75,000. If married, $100,000. If either spouse is over 65 $175,000. Equity in a motor vehicle is exempt to the extent of $2,300. Just guessing about the equity in your house, and for sure on your car, both would be sold in bankruptcy, and you would receive the proceeds to the extent of the applicable exemptions. If you have steady income you may wish to consider a Chapter 13, which would allow you to keep both, but make payments to your creditors over 3-5 years.

Answer Applies to: California
Replied: 7/21/2011

Answer By Gary Lee Lane
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
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It's up to the judge and the value of both items.

Answer Applies to: California
Replied: 7/21/2011

Answer By David Goldman
Apple Law Firm PLLC
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Yes, but you may have to pay for the equity in the car if there are no exemptions.

Answer Applies to: Florida
Replied: 7/21/2011

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