File Bankruptcy So You Can Keep Your Home, Car, Cash And More. Chapter 7 Bankruptcy or Chapter 13

Nov 24, 2020 | Bankruptcy

If you file for bankruptcy, you can keep your home, car, cash, and more.

So most people have this misconception that if they file for bankruptcy, they’re gonna have to give up their car. They’re gonna lose their house. Normally, that’s, not the case, even in a chapter, seven bankruptcy, like you’re, allowed to keep up to four thousand dollars of an automobile.

If you have a, if you actually are like oh money on it, normally you get to keep the whole thing. You just reaffirm the agreement in a chapter seven and you basically get to keep your car making the payments, as you always have.

If you’ve owned the car for greater than two and a half years and 910 days, and you’re, actually upside down on it. Where you actually owe money more money than the car’s worth or have a crazy insane interest rate, you may even want to look at that point doing a chapter 13 bankruptcy and cramming down the value of the car to have it paid Off that’s, one thing you can do if you basically owe more money on a car than it’s worth um.

You also get to keep cash in bankruptcy it’s not, but it’s not like you can go out and basically max out all your credit cards and take all the money out as a form of cash. Put it into a checking account and then expect that to be exempt and that’s a kind of bankruptcy fraud. Preferential Transfers are another type of fraud that you have to make sure does not happen

Anything you do prior to filing for bankruptcy can be re, can be reviewed for fraud by the trustee. So when you file for bankruptcy, you normally get to keep your house, you normally get to keep your car um.

It’s one of these things. If you don’t have, if you’re, you have this wild card exemption, where you get get to keep up to thirteen thousand nine hundred dollars worth of stuff. That’s on top of the homestead exemption, where you get to keep thirteen thousand four hundred dollars of various items.

So each item basically can’t, be above a certain amount if it’s above like let’s, say 625 dollars that additional amount that it’s worth would have to go in like like be covered By the wild card part, so let’s say you, you own a car.

It’s worth six thousand dollars. Four thousand of that can be exempted by the exemption for owning an automobile under the federal exemption. The additional 2 2000 would have to be covered by the wild card portion where you get to keep any sort of property.

This is normally like. The whole purpose of bankruptcy is for a fresh start for people. It’s, not for you to lose everything that you own. It’s, basically just to start get a financial do-over and restart.

You only can file chapter seven bankruptcy once every eight years and get a discharge, but that hopefully should be enough uh once a one-time reset like because of the corona right now, they’re. Looking at changing a lot of the rules and laws related to bankruptcy, so what’s? True today may be different tomorrow like currently, student loans are really difficult to be forgiven in a bankruptcy.

However, they’re talking about modifying the bankruptcy code, so that, like back the way it was before 2005 when they modified it, you could have your student loans forgiven. So if they go back to that way, people will be able to get their student loans forgiven.

Currently, there was a guy over in new york who had two hundred ten thousand dollars in student loans like forgiven, because he was never going to be able to repay them. It’s. It’s, of course, being fought about.

But as you can see, the laws are changing. What’s allowed is changing. So if you’re thinking about filing for bankruptcy, talk to an attorney, go over your situation and see what makes sense. Currently, we’re.

Actually, fighting for another person to have their student loans forgiven because they’ll probably never be able to repay them, based on their current salary. It’s, not like that. They’re, suddenly going to have an extra ten thousand dollars a year to like to go towards student loans.

It’s, they are where they are and we’ll, basically fight it out in court and see how it works. So if you need help, give us a call, we don’t charge for consultations, because we’d, rather talk to you now, one before you do something that could hurt you later, because filing for bankruptcy is a major financial undertaking.

For you and can have negative repercussions if it’s done incorrectly, so talk to an attorney for free thanks, bye,

Source : Youtube

The Law Offices of Patel & Cardenas

Why Choose Us?

Free Initial Consultations

Multilingual Attorneys

Thousands of Clients Served

Focus On Quality Client Care

Call us

(973) 542-9407