assets in a bankruptcy

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Hello, I drive truck, I am self employed and have been for the last 20 years. Lately with higher fuel cost, fuel surcharges, and the Government not allowing all of your right offs I just can`t do it anymore and I have been drowing in debt every since the last changes to the Government regulations.

I just have a few questions about my house. My wife and I own a house worth two hundred thosand, can we still keep living in our home, we are not in default with our mortgage company.

Also we need both of our vehicles to get to work. They are paid for are we entitled to keep them?

Posted on Thursday, December 17, 2009 | Filed under: Bankruptcy
 posted by Questions @ 10:39 pm 1 Comment
1 Expert Comment:

 At December 22, 2009 | 8:05 am , Bart Goth, Trustee in Bankruptcy Said...

It is not the value of your house that is important, but the amount of equity in the house. If you have less than $40,000 equity in the house (value less total mortgages) then as long as you can afford to continue making the payments on mortgage and the house will not be affected. However, if you have greater than $40,000 there will be an impact on the house and the severity of the impact will vary with the amount of equity we are dealing with.

In terms of the cars, each debtor is permitted a vehicle with up to $5,000 of equity. So as long as the equity in the vehicles doesn’t exceed this $5,000 amount (per vehicle, per debtor) then you shouldn’t have a problem here.

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