Exempt property (items that a debtor may usually keep) can include:
- Motor vehicles, up to a certain value.
- Reasonably necessary clothing.
- Reasonably necessary household goods and furnishings.
- Household appliances.
- Jewelry, up to a certain value.
- Pensions.
- A portion of equity in the debtor’s home.
Will I lose my cars in Chapter 7?
If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments. If you have less equity than the exemption limit, the car is protected.
What happens if my Ex Files for bankruptcy on my house?
Ideally, your ex filed for Chapter 13 bankruptcy, so your house is safe. The trustee does not take control of the debtor’s assets in Chapter 13, so you don’t have to worry about having his “half” of the house sold out from under you.
What happens if my house is in Chapter 7 bankruptcy?
Your mortgage balance is more than what the house is worth. If your mortgage balance is substantially greater than the value of your home, it may not be worth keeping. Many debtors decide that they can move to a comparable place and pay less. If you are upside down on your house, Chapter 7 provides a simple way to walk away from it.
Can a junior mortgage be eliminated in Chapter 7 bankruptcy?
If you are upside down on your house, Chapter 7 provides a simple way to walk away from it. Keep in mind, however, that in some cases, you can eliminate a junior mortgage in Chapter 13 bankruptcy. You don’t want to keep the house. People have both personal and financial reasons for wanting to surrender a house.
Can a co-owner of a house file bankruptcy?
Equity and Exemptions in Chapter 7. If your ex is on the deed to your property as co-owner in addition to being on the mortgage, his creditors and the bankruptcy trustee will be eyeing his share of the equity in your home for liquidation to pay off his debts.
