One of the most common fears people have about filing for Chapter 7 bankruptcy is losing their home or vehicle. For many individuals and families in Norman and throughout Oklahoma, a house and car are essential to daily life — and the good news is that many people who file for Chapter 7 bankruptcy are able to keep both.

Whether you can keep your house and car depends on several factors, including equity, loan status, and Oklahoma exemption laws. Understanding how these rules work can help you make informed decisions about your financial future.

How Chapter 7 Bankruptcy Treats Property

Chapter 7 bankruptcy is designed to eliminate unsecured debts such as credit cards and medical bills. In exchange, a bankruptcy trustee may sell non-exempt assets to repay creditors. However, exemption laws protect many essential assets, allowing filers to keep the property they need to live and work.

Oklahoma provides specific exemptions that often protect homes, vehicles, retirement accounts, and personal property.

Can You Keep Your House in Chapter 7 Bankruptcy?

In many cases, yes — homeowners can keep their house in a Chapter 7 bankruptcy.

You may be able to keep your home if:

• You are current on your mortgage payments, or
• Your home does not have significant non-exempt equity, or
• Your equity is protected by Oklahoma’s homestead exemption

Oklahoma’s homestead exemption is particularly generous and often protects the full value of a primary residence. However, if you are behind on mortgage payments, Chapter 7 does not automatically stop foreclosure long-term, and additional legal strategies may be needed.

Can You Keep Your Car in Chapter 7 Bankruptcy?

Many filers are also able to keep their car.

You may be able to keep your vehicle if:

• Your car loan payments are current
• The vehicle’s equity falls within Oklahoma’s motor vehicle exemption
• The car is necessary for work or daily living

If a vehicle has little to no equity or is fully exempt, it is typically protected. Even if a car has equity, there may be legal options to help preserve it.

What Happens to Secured Property?

Homes and vehicles are considered secured property, meaning they are tied to loans. If you want to keep secured property in Chapter 7 bankruptcy, you generally must continue making payments on the loan.

If payments stop, the lender may have the right to repossess or foreclose, even after bankruptcy. This is why timing and legal guidance are critical.

What Property Is Usually Protected?

In addition to homes and cars, Chapter 7 bankruptcy often protects:

• Retirement accounts and pensions
• Household goods and personal items
• Tools needed for work

Non-exempt property, if any, may be sold by the trustee, and the remaining qualifying debts are then discharged.

Why Speaking With a Chapter 7 Attorney Matters

Every bankruptcy case is unique. Equity calculations, exemption rules, and financial circumstances can change the outcome. Working with an experienced Chapter 7 bankruptcy attorney ensures:

• Your assets are properly evaluated
• Exemptions are maximized
• Filing errors are avoided
• Your rights are protected throughout the process

Chapter 7 Bankruptcy Attorney in Norman, Oklahoma

Law Offices of B. David Sissonhelps individuals and families in Norman and throughout Oklahoma understand their bankruptcy options and protect what matters most. He carefully reviews each client’s financial situation to determine the best path toward debt relief.