What Can Be Kept?

NOTICE: The answers given are general information only and are not intended to be legal advice. You are advised to seek the services of a competent, experienced bankruptcy lawyer for legal advice about your specific situation.

Can I keep my home and car or truck if I declare bankruptcy? Usually the answer is yes, if you can afford to pay for it. Some creditors hold a secured claim (for example, the bank that holds the mortgage on your house or the loan company that has a lien on your car). You do not have to pay a secured claim if the debt is discharged, but the creditor can still take the property. Even if a debt can be discharged, you may have special reasons why you want to promise to pay it. However, you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a reaffirmation agreement with the Court. Reaffirmation agreements are under special rules and are voluntary. Reaffirmation agreements:

  • Must be voluntary;
  • Must not place too heavy a burden on you or your family; and,
  • Must be in your best interest.