Can I Keep My Car?

If I file chapter 7 bankruptcy, can I keep my car?

Yes, in many cases when someone files bankruptcy individuals are able to keep their car and will not lose their car in the bankruptcy.

If there is no loan or lien against the car then a car would have a dollar value as an asset.  The value of a car varies depending on the make, model, year, miles, and condition.  Bankruptcy law provides debtors with "exemptions" to use to protect or to keep certain types of property and a certain dollar amount of property.   Using the exemptions provided by law many debtors are able to keep their cars. 

If an individual has a car that has a loan against it, then arrangements can often be made to allow the individual to keep or reaffirm the car and to keep making payments on the car. 

In some cases, where the value of the car is far less than the fair market value and individual can buy or redeem the car from the lender at the current fair market value with the help of outside lending.

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The information on this website is not intended as legal advice, does not imply an attorney client relationship, and you should consult with a professional or attorney regarding the details of your own personal facts and financial situation. Further the information is not warranted to be complete, accurate, or current.