CARS, NO INSURANCE, AND PERSONAL PROPERTY
FREQUENTLY ASKED QUESTIONS

Read below for frequently asked questions on filing bankruptcy regarding your personal property. Contact Us for additional questions or to speak with one of our bankruptcy attorneys today. 

Can I keep my household good, jewelry, and clothes in Bankruptcy?

Yes, Federal and Illinois law allows you certain exempt items such as household goods, jewelry, tools of the trade, clothes, and many other items. This means you usually keep all personal items. 

I was uninsured and in an automobile accident. Now the Secretary of State has taken my license. Can I get it back through Bankruptcy? 

Yes, the Illinois Secretary of State will re-instate a suspended driver's license after bankruptcy discharges the financial obligations to the injured parties and insurance company. 

They are trying to repossess my car. Can I stop them in Bankruptcy? 

Yes, the Illinois Secretary of State will re-instate a suspended driver's license after bankruptcy discharges the financial obligations to the injured parties and insurance company. 

I own a car worth $3,000 but I owe over $10,000 on the car. Can I use Bankruptcy to keep the car and pay only what it is worth? 

Yes, in most cases bankruptcy can be used to allow you to keep the car and pay the actual value of the car. The rest of the debt becomes unsecured and may be discharged or eliminated in the bankruptcy.

I gave a financial company a list of my personal property and pledged it to get a loan. If I take Bankruptcy, can I keep my furniture, television, etc.? 

Yes, unless you used the money you borrowed to buy the item pledged, you can take bankruptcy on the finance company loan and still keep exempt items you pledged as security for the loan.