Can I Keep My Car If I File Bankruptcy?
One of the myths about bankruptcy is that you will be forced to give up your car. In reality, federal bankruptcy laws allow you to keep a single vehicle up to a certain value. Even if you have an expensive car or you are still making payments on it, there are ways you can keep your car.
I am Cherry Hill, New Jersey bankruptcy attorney Joel R. Spivack. I dedicate my entire practice to helping people seek debt relief through Chapter 7 and Chapter 13 filings. With more than 30 years of experience practicing exclusively in the area of bankruptcy law, I am in a strong position to help you protect your car when you file bankruptcy.
Reaffirming Car Loans After Bankruptcy
When making payments on a car, you can keep the car:
- If your equity in the vehicle is not above a certain value (equity is the amount that would be left over after the car was sold at liquidation and the loan balance was paid)
- You are not behind on your payments (or you can get caught up)
- You reaffirm the debt and continue making payments
If the current value of the car is less than the amount you owe on it, you may be able to reduce the outstanding loan to the car’s current value.
Learn more: How do I stop a car repossession?
What If I Own an Expensive Vehicle?
If you have a vehicle that is worth more than the bankruptcy exemptions allow you to keep, you have a choice when you file bankruptcy. You can give up the vehicle or you can pay the trustee the liquidated value of the vehicle. The liquidated value is far less than the retail value.
If you file Chapter 13 bankruptcy and pay your debts off over time, you can keep all of your assets, including an expensive vehicle.
Schedule a Free Initial Consultation with a Cherry Hill Bankruptcy Attorney
To discuss your debt situation, call me, Cherry Hill bankruptcy lawyer Joel Spivack. You can reach me by phone at 856-488-1200, toll free at via e-mail. My regular business hours are 8 a.m. to 5 p.m., Monday through Friday, and free parking is available.
To read more about bankruptcy frequently asked questions, click here.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.