Will I Lose My Car or Home?

Will I Lose My Car or Home Through Bankruptcy?

Phoenix — Chandler — Mesa — Tempe

Bankruptcy laws are complex and difficult to fully understand. Consequently, while thousands of individuals and businesses file for bankruptcy protection each day, confusion over the basics of bankruptcy law is common.

Frequently, individuals' first questions when considering filing for bankruptcy involve whether cars and homes will be lost due to bankruptcy proceedings. The Law Offices of Jim Olsen can help you answer these questions and more.

Bankruptcy protection exists to help both debtors and creditors while minimizing harm to both. Therefore, bankruptcy laws protect debtors' rights to retain key quality-of-life assets while liquidating possessions deemed discretionary.

Generally, then, houses are protected in Chapter 7 bankruptcy, which involves the liquidation of nonexempt property. Chapter 7 bankruptcy laws also allow filers to retain their car, provided its value is below legal thresholds. A partial list of property generally exempt from liquidation in Chapter 7 bankruptcy proceedings includes:

• Homes (primary residences) and cars (limits are in place regarding quantity and value)
• Pensions
• Personal items, including needed furniture and appliances
• Medical devices
• Prepaid rent and security deposits, within limits
• Workers’ compensation income
• Tools related to your trade and livelihood

If you are considering filing Chapter 7 bankruptcy, an attorney from the Law Offices of Jim Olsen can meet with you, discuss your options regarding the retention of valued property and determine which property you are least willing to part with in a Chapter 7 partial liquidation bankruptcy.

Chapter 13 bankruptcy arranges for consolidated and decreased debt payments consistent with a repayment plan that is approved and administered through the court. In Chapter 13 bankruptcy no property is liquidated and your home, car and other property are not at risk.

If you are facing serious financial challenges and have questions regarding your bankruptcy options, we can help. Contact our offices for more information and a no-charge consultation.

Contact Us

If you have questions regarding bankruptcy and your right to retain key property including your home and car, contact our firm. We offer free initial consultations and charge reasonable and competitive rates. Our Phoenix office is conveniently located downtown, and our Chandler office is located near the 202 and 101 interchange. You can contact a lawyer online or call us at 602-324-7297.

We are a debt relief agency. We help Arizona people file for bankruptcy relief under the Bankruptcy Code.