The truth about bankruptcy these troubled economic times is that most people don’t lose anything except their debt. Most people don’t lose their home, car, jewelry, clothing, furniture, or anything else.
The bankruptcy law exemptions mean you get to keep a lot. In California, the law assigns a generous amount for the assets we need to live here, usually including enough for your home, clothing, car, and personal items, and perhaps sentimental or heirloom pieces.
Most people don’t have more value in their belongings than the exemption amounts; these cases are referred to as “no asset” cases. Of course, every person’s situation is different, but roughly 99 percent of my cases are legally considered “no asset” cases. If we were to determine that you, too, have a no asset case, all of your property would be exempt. Not only would you keep your car, but your home, clothing, jewelry, work tools, and other property would probably also be saved in a bankruptcy filing. Plus, you would get the debt relief you desperately need.
If you’re staying awake at night worried that you’ll lose your car if you file bankruptcy, please call me. I’d much rather that you knew your options to get out of debt than see you continue to struggle with debt you’re legally able to discharge. Bankruptcy was designed to help people get back on their feet, not ruin their ability to live, work, and take care of their families. You’ll most likely still be able to keep your car so you can get to and from work or pick up the kids from school.
I sincerely hope that your financial situation will turn around. With the state of the economy, though, along with the looming “fiscal cliff,” it’s unlikely that our country will see a quick rebound. If you can’t turn your finances around, know that you likely won’t lose your car or your home in bankruptcy.