Can I keep my car if I file for Bankruptcy?

Friday 5th of October 2012 01:45:15 AM

If you are filing for chapter 7 bankruptcy, or considering it, you may be asking yourself, “Can I keep my car in ch.7 bankruptcy?”. Being able to keep your car is important, as you want to be able to get to work and be generally mobile. Finding out whether you can keep your car really depends on your situation. You may have a loan payment, you may own your vehicle, or you may be leasing a vehicle. Let’s start with the last situation first.

If you are leasing a vehicle, the relevant question to ask yourself is, can I keep up with the lease payments, or do I need to turn the vehicle in for a situation I can afford? You have to be able to keep up with payments, so you don’t get yourself in trouble.

If you own your vehicle, in case of chapter 7 bankruptcy, your vehicle may or may not be taken in. It does depend on the state you live in and what your specific case is, but in most cases you can file for exemption and keep a vehicle that is valued under a certain amount. If there is a $7500 exemption for vehicles, and your vehicle is valued under that amount, you can keep it. If it is valued at above $7500, you have to be able to pay the difference or they will take your vehicle and give you the exemption fee to look for another one.


Glendale California Bankruptcy attorney Raffy Boulgourjian

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