Can you lose your horse in a bankruptcy?

Answer 1

It's like a bad country song, you will lose everything son.

I must respectfully disagree with the above statement. People do not lose all their belongings when they enter into bankruptcy proceedings.

When a person(s) need to declare BK for whatever legitimate reason they are allowed to exempt certain property. For example, the BK filer(s) is almost always allowed to keep their primary residence and vehicles. There are many other personal items/property that can be subject to exemption including livestock and pets. The listing of exempted items will be included in the BK filing documents and/or explained by the filer's legal representative.

BK is a federal action, but several U.S. states have implemented their own exemptions in conjuction with the allowed federal exemptions. You can check your state's exemption laws by doing a simple search (i.e. "name of state" bankruptcy exemptions).

Please note: If the BK filer(s) have defaulted in the payment of home and/or vehicle they must reaffirm the loans with the title/lien holders to protect the property from BK.