Do I Have to Include My House and Car in Chapter 13?

The question at the top of this page, "Do I have to include my house and car in Chapter 13 bankruptcy?" might be better expressed from a different angle: "What benefits can Chapter 13 offer in terms of my home mortgage or car loan problems?"

Whether a debtor files Chapter 7 or Chapter 13 bankruptcy, all income, debts and assets must be declared. A debtor who does not list all debts, including home mortgage and car loan, will be in violation of fundamental requirements for filing bankruptcy.

On the other hand, Chapter 13 bankruptcy often offers the debt relief solutions that mortgage holders need. When a homeowner has a large amount of equity in a home, the homestead exemption in bankruptcy may be insufficient to protect the house in bankruptcy. At the same time, a homeowner may be significantly behind on mortgage payments - and a Chapter 13 bankruptcy may offer the best way to protect a house while paying off mortgage arrearages over three to five years without penalties and often at a reduced interest rate. Chapter 13 can also reduce car payments and interest rates, credit car balances and medical bills as part of one consolidated repayment plan.

Chapter 13 Bankruptcy and Home Mortgage Questions? Contact an Experienced Chicago Bankruptcy Lawyer

Bring your individualized questions to the attention of a Chapter 13 bankruptcy attorney. Keep in mind that only three lawyers in Chicago are certified in consumer bankruptcy by the American Board of Certification*. Two are partners at Ledford, Wu & Borges, LLC. Contact us today to schedule a free consultation.

*The American Board of Certification is accredited by the American Bar Association and sponsored by the American Bankruptcy Institute and the Commercial Law League of America. Federal law recognizes board certification in bankruptcy. The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law and the certificate, award or recognition is not a requirement to practice law in Illinois.

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