Round Lake Beach bankruptcy attorney answers some common concerns about filing for bankruptcy:
What will happen to my house and car? Generally speaking, you are going to be able to keep your house and your car, but it really depends on the case pending. It really is a case by case scenario. However, generally speaking, you will be able to keep your car, as long as your equity is protected through your exemptions, or there is little to no equity at all in the property that you’re trying to keep. The amount of equity and the exemption amount will be determined by Illinois bankruptcy law.
For instance, when a person decides they want to file bankruptcy, they should look to see what’s the value of their car is worth. This can easily be done through websites such as Kelley Blue Book or also NADA. These websites are very good and will give an approximate amount of the fair market value for the property, and it will allow the person to see whether or not there is actual equity in the property.
For instance, if a person recently bought a new car within the past year and decides that Chapter 7 is the best of the bankruptcy options for them, then in all likelihood, that one year of car payments will probably not equal the full amount to be paid under the contract for the car. So in that circumstance, most likely there will not be any equity in the car or vehicle. This is because you still owe a lot of money on the car and the value that you have for your interest and your right is very small compared to how much you still owe. Basically, you still owe money on the car, so there is no equity involved.
However, if a person has a car that is paid out fully and outright and they look at the fair market value of the car, then there is equity in the car. Depending on the amount of equity you have is the question that needs to be answered in order to see whether or not you will lose your car. Most likely, in most circumstances, exemption will eat up any equity in the car, especially if you double your exemptions with a spouse.
For more detailed information about filing for bankruptcy, contact an experienced bankruptcy attorney in your local area. You will learn more than you could image about the entire process. You may even decide that you do not really need to file for bankruptcy. In some cases, you are best avoiding bankruptcy.