Legal Question in Bankruptcy in California

What will I lose?
I am in credit card debt for between 20 and 30 grand. I
cannot make all of my payments. If I file bankruptcy, will
I lose my beat up '95 truck that I still owe about $3000
on? How about my computer that I took a loan for? I
still owe about $2000 on that. That's about all I have of
value. Will I loose them?

Asked on 11/21/02, 10:36 am

3 Answers from Attorneys

Alvin Tenner Law Office of Alvin G. Tenner

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Re: What will I lose?

The creditors can take the property. However, you can reafirm the debt and still file bankruptcy.

Answered on 11/21/02, 12:56 pm

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Robert Miller Robert L. Miller & Associates, A Law Corporation

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Re: What will I lose?

Thank you for your inquiry. California law allows you to apply exemptions within a bankruptcy to keep your assets, including a vehicle and your computer. However, you indicated that you don't completely own the assets, since you have a loan. If they are in fact secured, then you have the right to choose to keep them in a bankruptcy, and continue to make payments, or give up the property and allow the debt to be wiped out.

Either way, you should be able to keep whatever property you choose to keep.

This area of law (exemptions) is somewhat complicated, so if you need help, or have questions, please feel free to email me directly at [email protected].

Answered on 11/21/02, 2:20 pm

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