Chapter 4:

Can I keep my automobile?
This is the first question most people ask when they are in my office. The automobile is a necessity. The court grants a generous exemption. 99% of people can keep their automobile. I will examine this issue during our first discussion. If you have payments due on the automobile, you must continue to make the payments.

Can I keep my home?
Generally, Yes. Many people have a very strong desire to keep their family home. And we understand that. The home is even more of a necessity than an automobile. You must have somewhere to live. Obviously, you must continue to make the payments. Bankruptcy will not allow you to keep the home and not pay for it.

What circumstances must exist for me to not be able to keep my home?
The primary reason the court may not approve you keeping your home is where the home is more luxury than shelter. If all of your neighbor’s homes are worth about $100,000 and yours is worth a million, clearly, you have a luxury home. The court will not allow you to not pay your debts and keep such a home. Few people in Michigan have this problem.

What is an exemption? And what property is exempt?
An exemption is the amount of value in a given item of property that the court has determined that a person filing bankruptcy can keep. Exempted property can not be taken by the creditors or the trustee. Property which is in excess of the allowable exemptions, must be turned over to the trustee. I will examine all your property and advise you on what is exempt.

Can I keep my 401k, pension plan, profit sharing plan, etc.?
Usually yes. "ERISA-qualified plans" are excluded. There is no limit on the amount you
have in these plans.

Will they come to my home and take my property or look to see what I have?
No. This is a myth. I can understand why most people would be traumatized by this if it were to actually happen. They will only wish to examine your property if they have reason to believe you have lied to the court as to the value of the property.

Do I have to disclose all of my assets?
Yes. All debts and assets must be disclosed by law and noted in your petition.

What about my boat, motorcycle, and ATV?
These items are usually considered luxury goods. There is no specific exemption for them. You may be able to keep them if we can fit their value into one of the other exemptions.