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Especially for furniture and cars, this may be a lot less than what you paid or what it would cost to buy a replacement.

The most important thing about a chapter 13 case is that it will allow you to keep valuable property–especially your home and car–which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors.Either type of case may be filed individually or by a married couple filing jointly. In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts.The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep.While your exemptions allow you to keep property even in a chapter 7 case, your exemptions do not make any difference to the right of a mortgage holder or car loan creditor to take the property to cover the debt if you are behind on payments.In a chapter 13 case, you can keep all of your property if your plan meets the requirements of the bankruptcy law.

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In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.

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