Will I lose my car if I file for bankruptcy? 16 Answers as of March 08, 2011

Generally that does not happen because you are entitled to "exemptions" which allow you to keep certain items of property. Which exemptions and in what amount depend on where you live. Consult a lawyer.

in most cases you can keep your car depending on its value. In California you may be able to utilize a wildcard exemption which will protect your vehicle even if its value exceeds the value of the exemption for a motor vehicle. Talk to a lawyer before doing anything.

Each state elects certain allowed exemptions. In Florida you can have equity in a car up to $1,000, plus any carryover from other exemptions not used. If you claim a homestead exemption you get another $1,000 worth of exempt assets and if you do not claim the homestead exemption you get another $4,000 worth of exempt assets. So, if your car, bank accounts, investment accounts (not retirement accounts), and furniture and furnishings, etc. are worth $3,000 you would get $2,000 of equity for your car if you are not claiming a homestead exemption.

You will need to determine the value of your car (see Kelley Blue Book ) and determine if it is exempt. If not, you either need to surrender the asset to the bankruptcy court or buy it back for the nonexempt value.

You will not lose your car filing BK. CA law protects up to $27K in cash and cars. Thank you.

No. If the car is worth a lot of money that can change though. If you file bankruptcy and are driving a $50,000.00 paid off car that will be a problem. I would recommend you talk to an attorney. We do free consultations on all bankruptcy cases.

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You can exempt it as a tool of trade up to 7500.00 value.

Please contact my office to discuss your option

That depends on the value of your car and what exemptions you have available under applicable state law. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

Not necessarily. There are a number of exemptions for personal property that may allow you to keep your vehicle. I would be happy to discuss this further with you. Please contact me for a free consultation.

If you are able to protect the value, you will keep it. It depends on the amount of equity in your car.

Bankruptcy law allows Californian human beings to protect their assets by claiming them exempt under the exemption laws of California, which specify how much you can protect of a particular type of asset. Whether you can keep your car without any hassle depends on how much it is worth now (KBB or NADA may tell you). Once you know that, you will know if the car exemption, currently in the amount of $3,525 if you do not have equity in your house to protect, is sufficient to protect your car or you need to apply another law to protect it, such as the wildcard exemption for about $23,250. Getting this analysis right is enough reason to retain competent and experienced counsel.

Rarely does anyone lose anything in bankruptcy. However, you don't say in your question whether it is a new Rolls Royce or an old Toyota. The correct answer is probably no but you would need to give an attorney information about all the property you own, including bank account balances, cash in your pocket, value of life insurance policies, works of art, lotto tickets that are winners, etc. to determine if there are enough exemptions to protect all of your property. You should really have a consultation with a bankruptcy attorney to evaluate your case before you file. You cannot get out after you file a Chapter 7 without court permission so make sure you know what you are doing before you do it.