Just because you are filing for bankruptcy does not mean that you have to give up all of your property.  Most people are able to keep all of their property in bankrupcy.  This is because certain property cannot be sold or taken from you according the bankruptcy exemptions that are provided by state or federal law.  The new BK laws made certain changes concerning residency requirements and in some cases actually capped the amount of equity that is protected in a residence.  These changes should not effect most people however.  On a good note, Congress did pass a provision allowing a person to be able to protect up to a million dollars in a qualified retirement account or IRA.

What Happens To Secured Debt In A Bankruptcy?

Congress made some changes with secured debt that are more favorable to creditors.  These may have eliminated some options available to filers concerning their outstanding automobiles.  You should never file for bankruptcy without knowing your rights in regards to exempt property.  The options that are available to you concerning your cars and the effect that actions you might consider taking prior to the bankrutptcy could have on your right to claim these exemptions.

This information is of general interest and should not be considered legal advice.  If you need legal advice seek the services of a professional or bankruptcy attorney.