Federal and State Exemptions
If you file a bankruptcy, yes you could lose an asset. Assets are cars, Houses, Boats, lake lots, Stocks, guns, and other similar things. There are Federal exemptions and state exemptions that you use to protect your assets when filing the bankruptcy. In some state they will allow you to use either state or federal some will not. California is a state that only allow you to use the state exemption which having two cars paid for could be a problem. What this all means is if you file a chapter 7 bankruptcy to discharge unsecured debts of fifty thousand dollars and both cars are paid for you would need to surrender one of them and the trustee would sell the other car and divide the money up between all the creditors. The other choice would be to go into a chapter 13 bankruptcy and keep both cars but through the plan pay to the unsecured creditor what the asset was worth.
There are state like Texas that you could use either state or federal exemptions which your home and two cars could be paid for and you would not lose them.
Each state is different this is were you should talk with a bankruptcy attorney to find out more.
Texas Bankruptcy Lawyers and Attorneys
Ohio Bankruptcy Lawyers
Oregon Bankruptcy Attorneys
Please fill out our free evaluation form to determine if bankruptcy is right for you.
