Can I Keep My House and Car If I File for Bankruptcy?
Worried about losing your home or vehicle? Here's how exemptions and Chapter 13 are designed to help you keep what matters.
The short answer: often, yes
Many people keep their home and car through bankruptcy. Two things make that possible: exemptions, which protect a certain amount of equity, and Chapter 13, which lets you catch up on missed payments over time.
How exemptions work
Each state sets exemption amounts (some let you choose the federal set) that shield equity in a home, a vehicle, and other essentials. If your equity fits within the exemption, the property is generally protected.
When Chapter 13 is the answer
If you're behind on a mortgage or car loan, Chapter 13's repayment plan lets you cure the arrears over three to five years while keeping the property — as long as you stay current going forward.
Know your state's rules
Exemptions vary a lot by state, so what's protected for you is specific to where you live. A licensed attorney can tell you exactly what you'd keep.
Key takeaway
Many people keep their home and car through bankruptcy. A free case review with a licensed attorney is the fastest way to know what applies to you.