Can I Keep My Car & Home?
The answer to this question is usually yes. It will depend on which chapter is filed and what assets are exempt from the bankruptcy. Other factors, such as whether payments are current and how much equity is in a vehicle or home, will come into play. These types of factors will largely drive which personal bankruptcy chapter an individual chooses to file. Of course the best way to sort through it is by calling a bankruptcy attorney in Longview WA.
Chapter 13 Bankruptcy
Chapter 13 usually offers the best option for keeping a home. Most possessions are kept in a chapter 13 bankruptcy as it is based on a repayment program. Chapter 13 will also protect a home from foreclosure and a car from being repossessed for the duration of the repayment period.
In the case of vehicles, if the value is much lower than the amount owed it may be best to let a car be repossessed. The lender will sell the car, deduct costs, and apply the payment toward the vehicle loan payment. The deficit, or amount left to be paid, will be added to the unsecured debt. A repayment plan will be set to pay a percentage of unsecured debt. The rest will be released as a discharge.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy does not have a repayment plan and involves complete liquidation. A trustee is assigned to review assets for the selling and repayment of creditors. If a home or vehicle have a lot of equity, and are not set up as exempt, the trustee can opt to liquidate them. If there is no equity, a home will not be sold. Transportation and residential property are often made exempt, making it possible for a debtor to hold onto them.
Longview WA is home to some interesting and unique attractions. One favorite attraction in the area is the Ape Cave Lava Tubes. A volcanic eruption occurring over 2,000 years ago formed these lava tubes. The caves got their name from an exploration club from the 1950s which called themselves the Mount Saint Helens Apes. These long tubes are naturally cold and remain around 42 degrees even on warm summer days. Longview WA residents know to wear a jacket when taking a day to explore these miles of lava tubes.