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What Can You Keep After Bankruptcy?

What Can You Keep After Bankruptcy?

A common bankruptcy myth is that you must give up all of your property if you file for bankruptcy. In fact, many people who file for bankruptcy are able to keep everything they own while enjoying protecting from creditors and debt relief.

If you have questions about what you can keep in a bankruptcy, the attorneys at RHM LAW LLP , are here to provide answers. We have helped numerous clients throughout the Los Angeles area achieve debt relief while keeping their property. Call (213) 344-0043 or contact us online for a free consultation with a California bankruptcy lawyer. It could be your first step on the road to debt relief.

Keeping Your House and Car in Bankruptcy

Your house: The law provides many options for saving your house from foreclosure. Filing for bankruptcy stops foreclosure immediately. In a Chapter 7, your house will likely be exempt from being seized. If you file for Chapter 13 bankruptcy, you will have three to five years to pay and cure your past-due mortgage payments (“arrears”).

Your car: Bankruptcy stops car repossession. If your car was already repossessed, bankruptcy may help you get it back. Whether you can keep your car permanently depend on your specific circumstances. In a Chapter 7, you may be able to keep your car if you keep up to date on payments or even reaffirm the note with a possible reduction in balance. If you file for Chapter 13, you will likely keep your car and may even qualify for an auto loan cram down.

Other Items You Can Likely Keep

In addition to your car and your house, bankruptcy will generally allow you to keep such property as:

  • Household goods and furnishings
  • Personal belongings
  • Checking and savings accounts
  • Pension
  • 401(k) account
  • Tools of the trade
  • Social Security benefits
  • Unemployment compensation
  • Welfare benefits
  • Other real estate, including rental property

These exemptions are subject to value caps and may change as bankruptcy law evolves. For information about what you can and cannot keep in a bankruptcy, it is important to consult with an experienced bankruptcy lawyer.

Contact Us

For a free initial consultation about filing for bankruptcy with RHM LAW LLP , call (213) 344-0043 or contact us online. Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles. Se habla español!

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. 

Client Reviews

What Clients Say About Working With Us
    "I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home."
    I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I quickly found out that they are foreclosure specialists and they could help me with my issue. They made the process very easy for me and laid out my options for me. I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home. They are the best bankruptcy law firm in Sherman Oaks.
    - Joseph R.
    "Was very impressed with the comprehensive professionalism of the firm..."

    Was very impressed with the comprehensive professionalism of the firm, especially Matthew Resnik... I had suffered through the incompetence of two previous bk lawyers not to mention fees far greater than anticipated, without resolution. Having never gone through bk before, I did not realize how difficult it could be...then, my case was turned over to Mr. Resnik...almost immediately there was a marked positive difference. Where there was little to no communication, all of a sudden I am getting updates...regularly. Further, my case was finally discharged...yet, Mr. Resnik continues to communicate, offer assistance...and, has NEVER asked for additional fees, which I am sure he could have justified...much unlike the two previous attorneys with which I was dealing. I have no reservations, whatsoever, referring and recommending Matthew Resnik for any and all business or personal bk issues...or, other wise. I have no doubt that he will be transparent on helping you regardless of the problem. Good guy.. good firm... a wonderful experience!

    - G.L
    "I filed bankruptcy with this firm 3 years ago and found that they are professional, friendly, and compassionate."
    I filed bankruptcy with this firm 3 years ago and found that they are professional, friendly, and compassionate. I also met with their loan modification department. Unfortunately, they were unable to help because of the type of loan that I have. I really appreciated that they did not lie, waste my time, or take my money in an attempt to modify a loan that was not doable. I've since used their firm for a couple of minor issues and found all of the attorneys to be knowledgeable and considerate. Attorneys Simon and Resnik are amazing!
    - Shannon J.
    "He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own."
    I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to his knowledge and expertise in the field. If you have a debtor on your back go to him to get it taken care of.
    - Kelly S.
    "As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others."
    This is to thank you for the exceptional work of you and your fine staff. In managing my bankruptcy and loan modification, a nearly five-year effort, your performance was stellar. I never felt alone or adrift, key concerns in those circumstances. The outcome was outstanding. As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others. Without hyperbole, I can attest that you are present a beacon. Thank you so much.
    - K.C.
    "We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service."

    Dear Mr. Resnik: We wanted to thank you for your professional handling of our loan modification with GMAC mortgage. We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service.

    - W and B Mejia
    "Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding."

    Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.

    - Skip K.
    "These are top-notch pros that'll have your back. I cannot recommend them highly enough."
    Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't know what to do. I met with a few lawyers but when I met with Simon he broke things down and gave me my options. I needed a car - so I filed BK and included the car to get it back. The evil credit union fought and Simon GOT ME MY CAR BACK!!! His team is amazing!!!! Maria Donna etc!!! These are top-notch pros that'll have your back. I cannot recommend them highly enough. Sincerely they saved my life. LA with no car!? ARGH!!!!!! *THANX ALL!!!!
    - Tim C.
    "They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life."
    Matt and his team are the best!!  They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I never felt judged or looked down on. They were efficient and really were lifesavers during this tough time. I can not recommend them highly enough!!!!
    - Rusty H.

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