Will I Lose Everything if I File for Bankruptcy?
For more information, contact Colorado law firm Foster Graham by phone at (303) 333-9810.
“If you file for bankruptcy, you will not necessarily lose your house or lose your car. That’s what my job is: to advise my clients about what the ramifications of filing bankruptcy are. If I have a client that comes in and has a substantial amount of equity in their house that they would lose if they filed bankruptcy, I wouldn’t file the bankruptcy for them. The same goes for a vehicle. You have exemptions for your assets and to the extent that the value of your asset exceeds the exemption, that’s a consideration for the attorney to advise their clients about filing bankruptcy.
No, you don’t automatically lose your house; you don’t automatically lose your car. There generally is no one coming to do an inventory of your assets at your house. You generally get to keep all your personal property. It’s only people that have a significant amount of equity in either a car or a house that would lose that. Those people generally won’t be filing bankruptcy.”