One of the first things that a professional bankruptcy attorney is asked is usually if someone can keep their house or car when they file for bankruptcy. This ultimately depends on the type of bankruptcy that is filed. A professional can help clients to determine the best bankruptcy type for their financial situation.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy gets rid of debt quickly. You can keep your car or home if you’re current with mortgage payments when you file most of the time. Filing for bankruptcy allows you to stay in your home at least for a month or two, but the bank is responsible for deciding if they will foreclose your home or not. With cars, you can reaffirm the debt by agreeing to a new contract. For those with a car that is worth less than the balance on their loan, they can ask the court to redeem it by paying a lump sum instead.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a reorganization plan for debt. It allows you to work with the court to get a repayment plan that is paid back in a time period (sometimes up to five years). With this bankruptcy type, not all filers are able to keep their car or homes. You most likely will be able to keep your car as long as you restructure your debt in order that you’re able to start being current with its payments.
Schedule a Consultation to Discuss Bankruptcy in Florida Today
When you’re considering bankruptcy in Florida, Mancuso Law, P.A. can help you. We serve the Boca Raton, FL area. We provide consultations where you can learn about our experience, our services and answer any questions you have about the upcoming process. To learn more about your bankruptcy options and to schedule a consultation with our professional attorney, call 561-245-4705 our law office today.