Can I Keep My House & Car in Bankruptcy? - Bankruptcy and Credit Counselling St. John's | S.R Stack Skip to content

Can I Keep My House and My Car or Truck If I File For Bankruptcy?

Many people wonder what will happen to their car, truck or house if they file for personal bankruptcy. To find out the answer, read on.

This is a common question that almost everyone asks.

The answer? Maybe.

It really depends on your situation. Three key questions come to mind:

1) Are you up-to-date on your payments on the vehicle or mortgage?

• If you’re behind on your payments then you’ll need to make arrangements with the lender as it is their decision to let you catch-up and keep the vehicle or house.

2) Is there equity in the house or vehicle?

• There might be equity in the house or vehicle if they are worth more than what is owing on any loans secured against them. If there is equity then you will need to speak to a trustee about how to deal with it.

3) Can you afford to keep it?

• Sometimes the best thing to do is to do a detailed, realistic budget and to determine if it is something you can afford, if it is then speak to a trustee in bankruptcy about how questions 1) and 2) affect you and your situation.

Contact Sean today to discuss any questions you may have about keeping a car, truck or house.

If you’re wondering what else you can keep if you file for bankruptcy, click here.

Did You Know?


Many people who file for bankruptcy get to stay in their home.


In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.


Many people who file for bankruptcy are able to keep their vehicle.


Most bankruptcies are NOT published in the newspaper.


Student loans can be included in a bankruptcy if they are more than seven (7) years old.


A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.


In NL, people ages 30 to 39 years old file for bankruptcy more than any other age group. [source]