Experienced South Jersey Bankruptcy Attorneys Explain What Happens to Your House and Car in Chapter 7

photo of a neighborhood

Chapter 7 bankruptcy provides many benefits, including the automatic stay and the Chapter 7 discharge. However, many people are concerned about what Chapter 7 bankruptcy provides many benefits, including the automatic stay and the Chapter 7 discharge. However, many people are concerned about what will happen to their homes or their vehicles if they file Chapter 7. Our South Jersey bankruptcy lawyers are happy to discuss what could happen with your house and your car in a Chapter 7 bankruptcy case.

Do You Owe Money On Your House or Your Car?

Home mortgage loans and car loans are secured debts, which means they are debts secured by collateral. When you borrowed the money, you pledged the property as security for the loan. If you do not pay the debt, the creditor can take the property.

If you file a Chapter 7 case and owe money on your house or car, you can keep the house or car if you agree to repay the underlying loans, and:

  • The monthly payment is reasonable;
  • The property is necessary to support yourself and your dependents;
  • You are current on the payments; and
  • You can afford the payments and still support yourself and your family.

If you are behind on your house or car and file Chapter 7, you can use the bankruptcy as a chance to walk away from the debt and start over, which may be the best choice for someone who cannot afford to pay back such loans. Chapter 13 is also an option to save your house or your car if you are behind on payments – contact Jenkins & Clayman to find out more.

Do You Own Your House or Your Car Free and Clear?

If you have a house or a car on which you do not owe any money, you can protect the property in Chapter 7 using exemptions. Exemptions are an area of bankruptcy law that can be confusing, so talking to an experienced bankruptcy attorney is the best way to find out if you can protect your house or your car in a Chapter 7.

Do not deny yourself the debt relief you deserve out of fear of losing your house or your car. Come talk to our South Jersey bankruptcy attorneys and find out what your options are. We may be able to develop the solution you need to get your finances back on track. With offices in five different locations throughout South Jersey, we make ourselves available to anyone who needs help with debt. Call us today for a free consultation.