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Ask WA Bankruptcy Lawyer Your Own Question
WA Bankruptcy Lawyer
WA Bankruptcy Lawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25
Experience:  30 years practice. Author of several articles.
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Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Emeritus23 replied 8 years ago.

Yes, if the car qualifies under your state or bankruptcy law exemptions. The Bankruptcy Code (11 USC 522 (d)(2) ) exempts the "debtor's interest, not to exceed $2,400 in value, in one motor vehicle."

You get to choose which exemptions to apply: the state exemptions or the bankruptcy exemptions of Section 522. State exemptions vary from state to state.

Expert:  WA Bankruptcy Lawyer replied 8 years ago.
The answer is absolutely correct as far as it goes.

The problem not dealt with, and the one that I see more often, is the loan used to purchase or refinance the car. The answer to this is much more complex. If you have such a loan, in order to keep it, you will have to make the payments. You may or may not have to reaffirm the debt. Reaffirming the debt means that your lawyer or the judge has to sign off and it means that for that particular loan, the bankruptcy does not exist. If you default and the car gets repossessed, you will still owe everything. If you do not reaffirm, you will not owe anything.

A question hotly debated is if you keep making the payments can they repossess the car anyway. This is a question of state law and is also a question of who your lender is and what policy they have adopted.