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This is question does not have a simple answer. Under Chapter 7 bankruptcy whether you will be allowed to keep your car varies by state. In the case of motor vehicles it depends on your equity in the vehicle and the "motor vehicle exemption" allowed by your state law. In some cases you are allowed only your equity -- that is the value of the used car minus the amount you own on a your loan. And of your equity your may be allowed only some portion, called the motor vehicle exemption. The exemption allowed by your state and your equity determine if you can keep your car.

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