Julio owned a house in Woodland Hills that was about to be foreclosed on. As the sole owner of repossession company he could just barely make ends meet, and he was behind on not just his three mortgages and credit card bills, but also his auto loan. Julio had no insurance and after a serious heart attack he could no longer afford to make any further payments and his bank moved to foreclose on his home and repossess his truck. To prevent his truck from being repossessed he hid it in the garage of his home but since the home is also up for sale the truck will likely be taken right after the sale of the home. He is now in position to lose both his house and truck at the same time. This truck was not just for transportation but a tow truck he used to make his living. He found a bankruptcy attorney in Los Angeles who told him how bankruptcy could get him relief.

Filing for bankruptcy triggers an automatic stay which stops most creditors from collecting funds or property in any way. This stops foreclosure sales and if the sale is concluded after the bankruptcy filing, that transaction is reversed. In addition to foreclosures, it stops cutoffs in utilities, repossessions, wage garnishments, civil lawsuits, and bank levies. While this applies to utility bills it is not advised to
file for bankruptcy solely for an amount as small as unpaid utility bills as the bankruptcy court may see the filing as abusive. A final caveat is that a creditor can be relieved from an automatic stay if secured property is subject to unacceptable risk or the debtors appears to be unable to make future mortgage payments or pay arrearages.

Julio was used to changing homes and was not concerned about losing his home but without the truck for repossessing vehicles, or another source of income, he could not afford to have it repossessed. Bankruptcy allows a certain dollar amount of exempt items which creditors cannot take and there are special categories for items such as equipment used for work that are not counted as a part of the general exemption. Since the truck was had no equity it did not use any of his exemptions. Therefore Julio can keep things like clothing, jewelry, and some electronics, in addition to the tow truck. As his current income over the last 6 months was below the median income to qualify for a
Chapter 7 bankruptcy and his expenses were close to his income he was eligible for filing a Chapter 7 bankruptcy   and could continue to keep his truck and operate his business.

Before you proceed withfiling for bankruptcy, please make sure to speak to a qualified bankruptcy attorney.