When you file for Chapter 7 bankruptcy, you will be permitted to retain certain properties. Some state laws, for instance, permit you to retain your interest in your home or vehicle if you include them on your inventory of bankruptcy assets. Other states may exempt your heirlooms, personal property, retirement funds, etc. from court proceedings.
If you wish to file for Chapter 7 bankruptcy, each state has its own residency requirements you must meet. For instance, you must have resided in the state for at least two years prior to submitting the application; or, if you have not resided in any other state during the preceding two years, you must have spent the majority of the 180 days preceding this two-year period in that state.
2. Exemptions for Home and Automobile:
Bankruptcy Chapter 7 Exemptions are only available if you have a certain amount of home equity (property value minus cost of sales, mortgage, and other obligations). If the value of your home exceeds the state or federal exemption, you will not be eligible for the exemption and will be unable to retain your home. In contrast, if you have no equity in the property, or if the property cannot be sold to pay off your debts, you are eligible for the exemption and may retain the property so long as the mortgage is paid.
The same holds true for car. You may retain the vehicle if it has no equity. If your equity in the vehicle exceeds the exemption limit, it will be sold to pay off your loan. In Bankruptcy Chapter 7 Exemptions, you can read more about the applicable laws.
If you guarantee the auto loan and/or mortgage, the property will not be included in the bankruptcy estate and you will be able to retain it.
Additional Exemptions:
There are additional properties that may qualify for exemptions under Chapter 7 of the Bankruptcy Code. The majority of federal and state laws permit debtors to retain all or a portion of their pension, IRA, or social security benefits during the proceedings. If the debtors are involved in a partnership or a sole proprietorship, certain of their business assets may be exempt from the proceedings.""
" - https://www.affordablecebu.com/
