After hiring a Bankruptcy lawyer, one of the first and most common questions people ask is, “Will I lose my house and my car?” The concern is validated, as a home and an automobile are surely the most prized and important assets the average person possesses. There are also plenty of stories out there about how bankruptcy lets creditors kick people out of house and home, leaving them on the street with nothing to their name. So what is the truth about bankruptcy and repossessions?

While there may be the occasional case where someone is in such an unpayable Debt that they lose all of their prized collateral property, there are certainly many exceptions to this outcome. Chapter 13 bankruptcy in particular is a great tool for avoiding or undoing vehicle repossessions. By setting up an adjusted repayment plan, you may be able to pay the actual value of the car instead of what you still owe. If your petition for bankruptcy is accepted, the creditor that repossessed your vehicle may even be ordered to return it to you.

Protecting Property in Chapter 7

If you use Chapter 7 bankruptcy instead of Chapter 13, you do run an increased risk of losing your home and automobile. But, once again, it is not a guaranteed necessity. Chapter 7 will discharge great portions of your unsecured debt, if not all of it, and perhaps even some of your secured debt. Any remaining secured debt may be wiped out in exchange for collateral property, such as houses and cars. But with a bankruptcy attorney on your side, you may be able to negotiate for other pieces of collateral to be collected first. It could also be possible to lose nothing at all based on your unique financial situation.

If you live in southeastern Texas and need help with bankruptcy or are worried that you could lose your home or vehicle, talk to Maida Law Firm, P.C. about your legal options. Our Beaumont and Houston bankruptcy attorney is a Board Certified® Bankruptcy Law Specialist, a title held by less than 10% of all attorneys in the state. Contact our law office today to learn how our experience and knowledge can work to your benefit in your bankruptcy case.