Losing all of one’s belongings is a common bankruptcy misconception. You don’t have to lose everything to reel in your debt. You can keep property and file bankruptcy.
Attorney Elizabeth Domenico dispels this bankruptcy myth in this quick lesson bankruptcy video.
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I’m often asked, “How can I keep property such as my car or my house if I file bankruptcy? Won’t I lose it all?”
This is a common misconception amongst people who read things on the internet.
File Bankruptcy & Keep Property
I’m here to tell you, in most cases when you have a car or when you have a house, as long as you’re making your payments on those, you’re not gonna lose them.
In some chapters of bankruptcy, there might be small items that are going to be turned over to the trustee, potentially tax refunds, or small things about wages.
Every case is different, so talking to someone about what your assets and things that you own are is going to be important.
How I Helped a Client Keep the Beloved Family Home
I had someone who had quite a bit of equity in their home and they were afraid of losing it, and it was their family home as their grandfather had built it.
We put them in a chapter 13, and we were able to buy back the equity so that they didn’t lose the property.
How We Accomplished It
We just paid the value over an extended period of time which allowed them to preserve that property, get rid of about 90% of their debt, pay a small portion back, and stay in that home.
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