Will bankruptcy take your car

Answer 1

If you are behind payments on the car, yes - the company with the loan can repo the car.

The same law applies if you had or had not filed bankruptcy. The only thing a bankruptcy can do is 1) protect assets DURING the bankruptcy (Automatic Stay) and 2) allow you to reconfigure the terms of secured loans. (like your car)

Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.

Answer 2

In Bankruptcy, anything of value that will net money to pay off a debt will be sold, usually at auction. The amounts owed are still owed no matter how one slices it.

Anyone should avoid going bankrupt ... if it means taking on another 2 or 3 jobs to stay afloat, then do it ... there are always other avenues besides bankruptcy.

Answer 3

Presuming it is a "reasonable" car, and not very highly valued, and if there is a loan on it, you can get current and afford it, and it is needed for life/work...yes. No, you do not get to keep a car of high value while not paying others, nor do you get to keep your car and not pay for the loan if it has one.

Answer 4

Most clients are happy to find that Chapter 7 bankruptcy does not result in them losing their car or home. The answer to your question depends on a variety of factors. First, under the bankruptcy code, each state is given authority to choose exemptions for Chapter 7 debtors. You can view California exemptions by going to http://www.firstsourcelaw.com/chapter7bankruptcy/chapter7bankruptcy_exemptions.html These exemptions list the type and value of personal property you may keep. Depending on the state of your filing, there is likely an exemption for a car. However, the exemption may have a monetary limit. If you car is worth more than the exemption, you may not be able to keep the car. Start by searching for the relevant exemptions in your state and the amount exempted. Cross-reference that information with the value of your automobile as pulled from the Kelley Blue Book website. Once you are armed with that information, you should have a pretty good idea of whether or not you can hold on to your car. Most of my clients find that they keep all their personal property, including their car, despite filing Chapter 7.

Answer 5

As long as you keep making the loan payments the creditor wont care if you declare bankruptcy. If doing a cram-down in a chapter 13, the lender would have to accept the current value of the car.