How can I keep my car during bankruptcy? 17 Answers as of May 29, 2013

How can I protect it?

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Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
To keep your car, remain current in your payment. The lender may require a written reaffirmation agreement approved by the bankruptcy judge.
Answer Applies to: California
Replied: 6/19/2012
Debt Relief Legal Clinic | Daniel J. Wiedecker
The best protection for your car is to continue making payments to the lender. Because the lender's position is secured by the car as collateral, a violation of the initial agreement with that lender gives the lender the power to repossess the collateral pursuant to the state law that govern's the contract (or as stated by the terms stated in the contract). Chapter 7 bankruptcy can provide a short term solution if a case is filed before the collateral is repossessed, however, that solution will end in approximately 100 days if the petitioner does not reaffirm, or redeem the collateral. Chapter 13 is a tool that can be used to pay for the car, however, the basic principle is that keep securitized collateral in/after a bankruptcy, a petitioner will be required to make a monthly payment of some kind, if not the original payment. It is important the petitioner seek competent counsel in the petitioner jurisdiction to determine qualifications and rights under Title 11 of the United States Code
Answer Applies to: California
Replied: 6/18/2012
Rosenberg & Press
Rosenberg & Press | Max L. Rosenberg
By attaching the appropriate exemption statute federal or state statute an experienced bankruptcy attorney can protect your car.
Answer Applies to: Connecticut
Replied: 6/18/2012
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
If your car is not paid off, then you need to keep making the loan payment and insurance payments. If the car is paid off, then you need to make sure it is within the values you can protect.
Answer Applies to: California
Replied: 6/18/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You can sign a reaffirmation agreement if you have a loan against your car or if your equity is exempt than you will be able to keep your car also.
Answer Applies to: New York
Replied: 6/18/2012
    The Smalley Law Firm, LLC | Cary Smalley
    You are generally entitled to exempt one vehicle per debtor when filing bankruptcy. However, if you have a loan you must continue to make car payments even after filing bankruptcy. I suggest you consult with a bankruptcy attorney to discuss your specific situation.
    Answer Applies to: Kansas
    Replied: 6/18/2012
    Olson Law Firm | Edward M Olson
    Almost everyone keeps their car. You are allowed about thirty-five hundred dollars in equity in your car. If you have more than that you may need to refinance your car before you file or buy it back from the trustee after you file.
    Answer Applies to: Michigan
    Replied: 6/18/2012
    G. Anthony Yuthas & Assoc.
    G. Anthony Yuthas & Assoc. | Tony Yuthas
    You are allowed certain exemption based on state law. Also depends on being current with payments.
    Answer Applies to: Colorado
    Replied: 6/18/2012
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    It depends on the value of your vehicle and the exemptions available to you when and where you file bankruptcy.
    Answer Applies to: Indiana
    Replied: 6/18/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    If it falls within your exemption limits you will keep it.
    Answer Applies to: Michigan
    Replied: 5/29/2013
    Attorney At Law | Harry D. Roth
    Unless you have a very expensive, and fully paid for, car, you can almost always protect your car in a bankruptcy. The particular way of doing it depends on the value of the car, how much you still owe on the car, if any, the use of the car (personal or business) and a host of other factors, especially what else you own and need to protect.
    Answer Applies to: California
    Replied: 6/18/2012
    Barbara Fontaine, Esquire | Barbara Fontaine
    You are allowed exemptions during bankruptcy. If you owe money on your car, the asset is only worth the book value minus the remainder of the loan. You need to reaffirm the car loan and keep paying for it in order to keep it. If it has no loan, you may be able to exempt its value.
    Answer Applies to: Rhode Island
    Replied: 6/17/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    Normally, yes. But, it does depend on how much the vehicle is worth, how much you owe and where you live. Filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
    Answer Applies to: Arizona
    Replied: 6/17/2012
    Law Offices of Diann C. Moseley | Diann Moseley
    If you still owe on the vehicle, make sure to keep your payments current and you should not have a problem. If the vehicle is paid for, you get to keep it if it is properly exempted under your state's available bankruptcy exemptions. Bankruptcy exemptions protect assets from seizure.
    Answer Applies to: District of Columbia
    Replied: 6/17/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    You can keep your car during bankruptcy by making the monthly payments on it. If you own your car outright, with no payments, and you do not own a home and claim the homestead as exempt, you can claim up to $4000 of personal property as exempt from the claims of creditors. Florida statutes also allow you to claim up to $1000 of equity in a single motor vehicle as exempt. Used cars usually do not have much equity in them. Do not overvalue the car. We like to think that our possessions are high in fair market value, when in fact they are not.
    Answer Applies to: Florida
    Replied: 6/15/2012
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Either exempt is under applicable codes (see CCCP 703 or 704) or if leased or financed, keep up with payments and consider assuming lease or reaffirming loan.
    Answer Applies to: California
    Replied: 6/15/2012
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