Many people are overwhelmed by their debt but afraid to consider bankruptcy because they might lose their car or house.  When a person files for bankruptcy, she must list all her assets.  However, many times there is protection for the asset called an exemption, or there is very little equity in the asset.  Equity is the difference between what is owed on the lien against an asset and the value of the asset. For example, a debtor might own a 2010 Kia Sorento worth $10,000.00.  If he owes … [Read more...]