What property can I keep when I file for a Chapter 13 Bankruptcy?
How are my house, car, cell phone, and money handled in Chapter 13?
Chapter 13 bankruptcy allows you to protect most of your assets, including your home and car. This bankruptcy filing lets you pursue financial relief while protecting your way of life. Through the three- to five-year repayment plan, you will make monthly payments toward your debt that are realistic for you. Let’s break down how different assets are treated in a Chapter 13 bankruptcy.
Can I Keep My House?
Chapter 13 bankruptcy can help you stop a foreclosure proceeding on your home. Through the repayment plan, you will make payments toward the arrears owed on your home. After you have filed, you will need to keep current on mortgage payments as they come due to keep your home.
Can I Keep My Car?
The debt owed on your car loan can be paid off through the repayment plan. If you have fallen behind in payments before filing, there will be an automatic stay in place that will prevent the repossession of your car. If you qualify, you may even be able to reduce the debt owed on your car to its market value price or reduce the interest rate you are paying.
Can I Keep My Cell Phone?
In the majority of cases, you will be able to keep your cell phone.
Can I Keep My Tax Refund?
Tax refunds are considered disposable income for the most part, but the trustee in your case will allow you to keep some potion of them. If filed individually, you can keep $1,200 plus any earned income credit. If filed jointly, you can keep $2,000 plus any earned income credit.
Is Chapter 13 Bankruptcy Right for Me?
If you’re needing relief from mounting debt, consult with an experienced bankruptcy attorney. The right attorney will assess your financial situation and show you all options available. Meet with one of our bankruptcy attorneys at Hoglund Law for a free consultation to see if Chapter 13 bankruptcy is right for you.