Can I keep my house and car if I file for bankruptcy?

When an individual files for bankruptcy, the ability to retain assets such as a house and car often depends on several factors, including the type of bankruptcy filed and the specific laws in the individual's state. In the United States, there are two common types of personal bankruptcy: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, which is often referred to as liquidation bankruptcy, the debtor's non-exempt assets may be sold to pay creditors. However, many states have homestead exemptions that allow individuals to keep their primary residence up to a certain equity value. The same principle applies to vehicles. If the car's equity falls below the state's exemption limit, it typically can be retained. Each state has different exemptions, so the specifics can vary. On the other hand, Chapter 13 bankruptcy is a reorganization form of bankruptcy that allows individuals to keep their property while making payments on their debts over a three to five-year plan. In this case, as long as the debtor adheres to the repayment plan and does not default, they can usually keep their home and car while addressing their debts. It is always prudent for individuals considering bankruptcy to review their specific circumstances and consult with a legal professional familiar with bankruptcy law in their state. For the most accurate and current information, one might also consider looking on the SunTrust website or other reliable sources for further details about their options and processes regarding bankruptcy.