If you are facing a financial problem and failing to keep up with the home mortgage or car loan, then it is obvious that you are worried that your house will be foreclosed on or your car will be repossessed. While filing for bankruptcy, you are probably worried about the same. However, you need to know that even during the bankruptcy process, your car and house can remain protected.
Unlike what you think, the U. S. Code of Bankruptcy is designed to offer you a fresh start on your finances. So, there is no reason to be scared that your assets will be liquidated. Rather hire our Pittsburgh bankruptcy lawyer who will help you get benefitted from the filing and keep your house and car.Protect Your House and Car
According to the U. S. Bankruptcy Code, you get a chance to avail yourself of exemptions that will help your lawyer get some shield for your assets including your home and car. They will consider your dents and analyze how the exemptions can protect your house and car during the proceedings.
The value of the property or the equity will be the determining factor for this. If you are filing for bankruptcy in Pennsylvania, you will be able to choose between state and federal exemptions. It is necessary that you consult an experienced Pittsburgh bankruptcy lawyer before making the decision.The Difference Between Chapter 7 and Chapter 13
While chapter 7 bankruptcy is the most popular type of bankruptcy offering a fast discharge typically in 6 months, chapter 13 bankruptcy takes longer, from 3 to 5 years. With chapter 7 there is the risk of liquidation while chapter 13 offers a repayment plan.
While chapter 13 is potentially a better choice for protecting your property and assets, it doesn’t wipe off your unsecured debts. But if you are filing for chapter 7, this doesn’t mean that you will be losing your home or car. With the help of exemptions, you can protect these assets.Federal Car Exemption
As in the United States, bankruptcy is designed to relieve you from the pressure of the debts, you get to shield your assets. To start a life, you will need to have home and car. And with the following options, you can save your car.
Section 522(d)(2) of the U. S. Bankruptcy Code allows you to have the interest of $4000 to take as an exemption on your car. This value will be subtracted from the blue book value of your car. If you need more protection for the residual amount, the Pittsburgh bankruptcy lawyer will help you.
With federal wild card exemption, you get a $1324 exemption for protecting your car.Exemption for Protecting Your Home
Section 522(d)(1) of the U. S. Bankruptcy Code will offer Federal Homestead Exemption up to $25,150 that can effectively protect your home. If you are filing jointly with your spouse, then you both can get a double exemption on your home. This exemption doesn’t include rental homes. But for mobile homes and houseboats, you get the exemption.
For a more detailed discussion with our Pittsburgh bankruptcy lawyer, come to Pittsburgh Bankruptcy Law Group today.