In most situations, you will not lose your car due to filing for bankruptcy under Chapter 7 of the Bankruptcy Code. A Chapter 7 bankruptcy is a court-supervised procedure where, put simply, your assets may be liquidated and the proceeds distributed to your creditors, depending on their standing. You have the right to keep certain of your assets as exempt property. There are both state and federal exemptions. Your Nebraska bankruptcy attorney will be in the best position to determine what assets are exempt and under which exemption and how to present this information to the court.
The majority of people who file for such a bankruptcy do not lose any property. Your Nebraska bankruptcy attorney will be able to determine what can be exempted and whether to exempt under state or federal exemptions, and the best path to follow in order to keep your car.
Every case is different, as everyone’s financial situation is different, but an experienced bankruptcy attorney will be able to determine which methods are best used to keep your car in your possession when filing a Chapter 7 bankruptcy in Nebraska. Things that are considered “normal” household items and goods and personal effects can be exempted. If you own your car, it may be considered exempt from allocation as an asset. If you still owe money on your car, it is under a lien, but you may still be able to keep your car under certain exemptions. You may also reaffirm your debt, which means you will agree to pay your car loan after your bankruptcy.
If you are considering filing for bankruptcy but are uncertain where to begin or what will happen, contact Steffens Law Office. We will schedule an appointment to discuss the best options for your case.