A question that I am frequently asked in meetings with clients is will they be able to keep their house or car after filing bankruptcy.

Not only is the filing of bankruptcy not a factor by itself which would cause someone to lose these assets but bankruptcy can actually assist, depending on the type of case filed, in helping an individual to keep these assets.

A chapter 13 bankruptcy can provide a payment plan to cure arrears owed on house or cars or, if circumstances allow, a restructure of the car debt may be possible to lower payments and/or reduce the interest rate on the unpaid balance.

A chapter 7 bankruptcy, if the circumstances allow, can provide some breathing room via the automatic stay which comes into existence when the case is filed, for the debtor to cure arrears or perhaps reach some accommodation with the creditor on some modification of the contract if reduced to writing in a reaffirmation agreement submitted and approved by the bankruptcy court.