Can you own a vehicle if you file for bankruptcy?

Answer 1

THIS QUESTION HAS BEEN ASKED AND ANSWERED MANY, MANY TIMES. IT IS PART OF THE DATABASE HERE. PROPERLY USING THE SYSTEM MEANS YOU WOULD HAVE GOTTEN THE ANSWER WITHOUT HAVING TO WAIT! (Or inconveniencing others and wasting valuable resources). (And consider that if you don't understand how to use this simple system, which actually asked if this or a similar question were what you were here asking about - before your failure to think forced this into the active forum - you really should really consider having your own personal lawyer handle EVERYTHING to do with your financial matters and especially any BK issues. All of which are much much more complex and less forgiving of not adhereing to the system than this). It's not a "can"...it's a must! ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. The court will then order each of them in priority according to the laws, some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder becomes a general or unsecured claim against the BK. You get a fresh start.... Not disclosing all items is frequently easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well).

Answer 2

You can file bankruptcy yourself or with an attorney. People choose an attorney because they do not want to mess with all the motions or learning any law and this can cost anywhere from 300 to 500 dollars to start a bankruptcy action. You can keep one vehicle and your house in a bankruptcy. Technically, when you file bankruptcy you file it for everything in a Chapter 7 and that will wipe away all debts (if you pass the test that they give to even claim bankruptcy) or Chapter 13 which is a consolidation of your debts to pay it off after partial liquidation of assets but be protected under federal bankruptcy law. It is best for your loan companies for your house and vehicles know about your bankruptcy as this will stay any repossession or foreclosure on your household or vehicles. That means they can not repossess or foreclose on your property until the bankruptcy procedure begins and you remain current on your payments throughout your bankruptcy. This can help you catch up and keep your house and one vehicle. You can technically claim bankruptcy and not tell your lenders for your house or vehicles but they will not "stay" or stop repossession or foreclosure on your property until you notify them (calling one of their call centers) and giving them your bankruptcy info including your case number. Hope this has been helpful.

Answer 3

Yes. If there is equity in the vehicle (i.e., you owe nothing or less than the vehicle is worth), you may have a problem if you have more equity than the exemption allows in your state or under the federal exemptions, if available. You will have to pay the trustee whatever the excess equity is, or turn the car over to the trustee to sold at auction. Discuss the issue with a local bankruptcy lawyer.

Answer 4

Yes. And if the vehicle becomes part of the assets used to resolve the BK depends on many things, especially which type of BK you file and if there is a loan against the car.

Answer 5

Yes.