Missouri Illinois Bankruptcy Attorney Foreclosure Reposession of Car

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Bankruptcy Law Frequently Asked Questions (FAQs) | Missouri & Illinois Common Bankruptcy Legal Questions

Q: Will I lose everything I own if I file bankruptcy?

A: Most of our clients don't lose anything.  While laws vary from state to state, every state has exemptions that protect certain kinds of property. Using Missouri as an example, there are exemptions to protect such things as your house, your car, your truck, household goods and furnishings, IRAs, retirement plans, the cash value in life insurance, wages, and workers compensation claims. There is even a "wildcard" exemption per person that can be applied wherever you want it.  In those rare situations where you have more property than can be protected by available exemptions, there is Chapter 13.  In Chapter 13, you can even keep this property by paying back more to your unsecured creditors.

At the same time, filing bankruptcy does not generally wipe out or get rid of mortgages or liens against your property.  Therefore, if you want to keep a car, truck, home or business equipment that serves as collateral for a loan, you need to keep paying on the debt.  If you make these payments and have exemptions to cover any value above what is owed, you can rest assured you will be able to keep these items.

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