Whether you can keep your house and car if you file for bankruptcy depends on several factors, including the type of bankruptcy you file, the amount of equity you have in your property, and whether you are current on your mortgage or car loan payments.
In Chapter 7 bankruptcy, also known as liquidation bankruptcy, you may be required to surrender non-exempt assets to pay off your creditors. However, many states allow exemptions that can protect some or all of the equity you have in your primary residence and vehicle. If you are current on your mortgage or car loan payments and can continue making payments, you may be able to keep your home and car.
In Chapter 13 bankruptcy, also known as reorganization bankruptcy, you can keep your assets while you make payments under a court-approved repayment plan. This plan typically lasts three to five years, and can allow you to catch up on missed mortgage or car loan payments and keep your home and car.
It is important to consult with a bankruptcy attorney to determine the best course of action for your specific situation.