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Anthony Guillory
Anthony Guillory,
Category: Legal
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Experience:  Attorney at Monte Vista Law Center
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Request Barrister: Do you know if or when I file, would I be

Customer Question

Request Barrister : Do you know if or when I file for Bankruptcy, would I be able to keep my car that Im making payments on Never missed or late payments ..or will I have to Surrender it ? ( Westchester NY )
Submitted: 2 months ago.
Category: Legal
Expert:  Anthony Guillory replied 2 months ago.


To answer your question: it depends. You are wanting to keep your vehicle that you are making payments on. For the sake of answering this question, I will assume that you are contemplating filing for chapter 7 - liquidation bankruptcy. If so, the only concern is the equity in the car. To calculate the equity, you take the current market value of the car and subtract what you owe on it. If the car is worth more than you owe, this is equity. You are allowed to keep a certain amount of equity under your state's exemption scheme. You need to look up what the state exemption is for an automobile and make sure that the equity you own in the vehicle is less than the state exemption amount. If so, be sure that you see a qualified bankruptcy attorney for your filing to make sure that your car is listed properly on the schedules. Finally, you may want to consider a reaffirmation agreement with the lender. Whether or not you decide to do this depends on whether the existing loan is in your best interest, and what terms the lender is proposing to move forward with. I strongly suggest you consult with a local bankruptcy attorney so that you are certain that your asset is protected.

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