Palm Bay, FL Bankruptcy Law Firms & Lawyers

You are actually better off not to reaffirm the mortgage. They cannot institute foreclosure if you remain current, and they could only go after the house, not you for a deficiency judgment, if at some time in the future you start missing payments.

Yes, the Bankruptcy Court can take your car. Otherwise you could keep your fully paid for Rolls Royce and your creditors would not get anything so you can keep your luxury car. You are allowed an exemption of $1,000 for a motor vehicle. If you file a joint bankruptcy with your spouse and the car is titled jointly, you can each apply a $1,000 exemption to the car for a total of $2,000. In Florida if you do not own real estate there is also a super exemption of $4,000 that you could apply to the car ($8,000 for a husband and wife). If you cannot cover the entire value of the car with the allowable exemptions, you can either pay the bankruptcy court the value that was not covered by exemptions with funds acquired after the bankruptcy was filed or you can surrender the car to the Bankruptcy Court. The Trustee will then sell the car, pay you the amount of allowable exemptions and use the rest of the proceeds to pay creditors. The bankruptcy law doesn't really care whether you can come up with the funds to pay the court if the car is worth more than you can claim as exempt property. The lawmakers who created the law determined how much you can keep. In Florida they determined that $1000 equity in a car was as much as a person declaring bankruptcy is entitled to keep. Most people who file for bankruptcy protection have loans against their cars or lease their cars. As a result they have no equity in a car and have to pay off their car loan to keep the car.