I have been doing this work for nearly 25 years and I still continue to be surprised when people come into the office to talk about options to resolve their difficult debt situations and ask me if they will lose all of their property if they file bankruptcy. This is a question I continue to get even though most people today know others who have field bankruptcy and they know that their friends who filed bankruptcy didn’t lose anything that they didn’t want to lose.
Sometimes losing property is something that you want to do. With the real estate market being as depressed as it currently is, many people are making the decision to get out from under houses that are worth now far less than they were only a few years ago. It just doesn’t make sense to hang onto an asset that is that expensive, costing hundreds (or over a thousand) every month, and is now thousands, or tens of thousands of dollars negative in equity.
Conversely, most people want to keep their cars. And most people do. In a Chapter 7 or Chapter 13 you have the option to keep the car, or let it go, depending on which is better for your family’s situation.