Bankruptcy

Effect on Home & Vehicles

Can you keep your home?

Can you keep your home, is one of the most frequently asked questions when faced with a bankruptcy. While the home loan is technically a secured loan with the house itself serving as collateral, many states have passed laws that protect the house in bankruptcy.

In Arizona, the equity of your home is protected by a homestead of $150,000.00 dollars. Hence, if your equity in your home is less than $150,000.00, you can keep your home providing that you make your mortgage payments.

If the equity is more than $150,000.00 you still may be able to keep you home. Please discuss this matter with one of our experienced bankruptcy attorneys.

Can you keep your cars and trucks

There are certain assets which state and federal law have determined to be exempt from the reach of creditors, and this may include your car or truck. In Arizona your exemption for a motor vehicle is $5,000. Hence, if your equity in your vehicle is under five thousand dollars, you can keep your vehicle. Even if you think that your equity is more than $5000, there are many things that you can do in order to keep your vehicle.

If your vehicle has been repossessed

A repossessed vehicle can be recovered by filing a Chapter 13 bankruptcy, if the case is filed before the vehicle is sold by the lender. However, the court maybe reluctant to return possession of a vehicle if you do not have current insurance on the vehicle. Remember that you must act immediately if you want to recover your vehicle.

Contact our office for a no charge consultation with an experienced Arizona bankruptcy lawyer at Platt & Westby.