{"id":189616,"date":"2024-03-27T02:05:28","date_gmt":"2024-03-27T02:05:28","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/?p=189616"},"modified":"2024-03-27T02:05:28","modified_gmt":"2024-03-27T02:05:28","slug":"can-i-keep-my-car-in-bankruptcy","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/","title":{"rendered":"Can I keep my car in bankruptcy?"},"content":{"rendered":"<p>When considering filing for bankruptcy, one of the most common concerns people have is whether they can keep their car. As bankruptcy laws can be complex, it can be challenging to determine what assets can be retained and what may be taken away. However, the good news is that in many cases, it is possible to keep your car even after filing for bankruptcy.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Keep_My_Car_in_Bankruptcy\" title=\"Can I Keep My Car in Bankruptcy?\">Can I Keep My Car in Bankruptcy?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#What_is_the_Difference_Between_Chapter_7_and_Chapter_13_Bankruptcy\" title=\"What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?\">What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Keep_My_Car_in_Chapter_7_Bankruptcy\" title=\"Can I Keep My Car in Chapter 7 Bankruptcy?\">Can I Keep My Car in Chapter 7 Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#What_is_Equity_in_a_Car\" title=\"What is Equity in a Car?\">What is Equity in a Car?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#What_are_Vehicle_Exemptions\" title=\"What are Vehicle Exemptions?\">What are Vehicle Exemptions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#What_Happens_if_I_Have_More_Equity_in_My_Car_Than_the_Exemption_Limit\" title=\"What Happens if I Have More Equity in My Car Than the Exemption Limit?\">What Happens if I Have More Equity in My Car Than the Exemption Limit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Keep_My_Car_in_Chapter_13_Bankruptcy\" title=\"Can I Keep My Car in Chapter 13 Bankruptcy?\">Can I Keep My Car in Chapter 13 Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Will_Filing_for_Bankruptcy_Stop_Vehicle_Repossession\" title=\"Will Filing for Bankruptcy Stop Vehicle Repossession?\">Will Filing for Bankruptcy Stop Vehicle Repossession?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#What_Happens_if_I_am_Behind_on_My_Car_Loan_Payments\" title=\"What Happens if I am Behind on My Car Loan Payments?\">What Happens if I am Behind on My Car Loan Payments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Do_I_Still_Have_to_Make_Car_Loan_Payments_During_Bankruptcy\" title=\"Do I Still Have to Make Car Loan Payments During Bankruptcy?\">Do I Still Have to Make Car Loan Payments During Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Get_a_Car_Loan_After_Bankruptcy\" title=\"Can I Get a Car Loan After Bankruptcy?\">Can I Get a Car Loan After Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Sell_My_Car_During_Bankruptcy\" title=\"Can I Sell My Car During Bankruptcy?\">Can I Sell My Car During Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#Can_I_Keep_My_Car_If_I_File_for_Bankruptcy_with_My_Spouse\" title=\"Can I Keep My Car If I File for Bankruptcy with My Spouse?\">Can I Keep My Car If I File for Bankruptcy with My Spouse?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Can_I_Keep_My_Car_in_Bankruptcy\"><\/span>Can I Keep My Car in Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\n**The answer to this question is yes, in most cases you can keep your car when filing for bankruptcy.**<\/p>\n<p>Filing for bankruptcy does not mean that you will lose everything you own. The primary purpose of bankruptcy is to provide you with a fresh financial start, rather than leaving you with nothing. Whether you can keep your car or not depends on the type of bankruptcy you file, your equity in the vehicle, and whether you can continue making the monthly payments.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Difference_Between_Chapter_7_and_Chapter_13_Bankruptcy\"><\/span>What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nChapter 7 bankruptcy, also known as &#8220;liquidation bankruptcy,&#8221; allows you to eliminate most of your unsecured debts. On the other hand, Chapter 13 bankruptcy, often called &#8220;reorganization bankruptcy,&#8221; involves creating a court-approved repayment plan to pay off your debts over a period between three to five years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_Keep_My_Car_in_Chapter_7_Bankruptcy\"><\/span>Can I Keep My Car in Chapter 7 Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\n**Yes, you can usually keep your car in Chapter 7 bankruptcy, provided that you are up to date on your car loan payments and your equity in the vehicle does not exceed the exemption limit set by your state.**<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Equity_in_a_Car\"><\/span>What is Equity in a Car?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nEquity in a car refers to the difference between the current market value of your vehicle and the balance you owe on your car loan. For instance, if your car&#8217;s market value is $10,000, and you still owe $5,000 on your car loan, your equity would be $5,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_Vehicle_Exemptions\"><\/span>What are Vehicle Exemptions?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nVehicle exemptions allow you to protect a certain amount of equity in your car during bankruptcy. The exemption amounts vary by state, and some states even offer additional exemptions for vehicles used for work or if you are disabled.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Happens_if_I_Have_More_Equity_in_My_Car_Than_the_Exemption_Limit\"><\/span>What Happens if I Have More Equity in My Car Than the Exemption Limit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIf your equity exceeds the exemption limit, you may be required to either surrender your vehicle or pay the trustee an amount equal to the non-exempt equity to keep it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_Keep_My_Car_in_Chapter_13_Bankruptcy\"><\/span>Can I Keep My Car in Chapter 13 Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\n**Yes, you can typically keep your car in Chapter 13 bankruptcy, as long as you include the car loan in your repayment plan and fulfill the plan&#8217;s requirements.**<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Will_Filing_for_Bankruptcy_Stop_Vehicle_Repossession\"><\/span>Will Filing for Bankruptcy Stop Vehicle Repossession?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nFiling for bankruptcy initiates an &#8220;automatic stay&#8221; which immediately halts all collection activities, including vehicle repossession. This stay usually remains in effect throughout your bankruptcy case.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Happens_if_I_am_Behind_on_My_Car_Loan_Payments\"><\/span>What Happens if I am Behind on My Car Loan Payments?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIf you are behind on your car loan payments, filing for bankruptcy can provide you with an opportunity to catch up on missed payments and keep your vehicle.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_I_Still_Have_to_Make_Car_Loan_Payments_During_Bankruptcy\"><\/span>Do I Still Have to Make Car Loan Payments During Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nYes, you are generally required to continue making car loan payments during bankruptcy, as it is considered a secured debt. Falling behind on these payments could result in the lender seeking permission from the court to repossess your vehicle.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_Get_a_Car_Loan_After_Bankruptcy\"><\/span>Can I Get a Car Loan After Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nYes, it is possible to get a car loan after bankruptcy, although it may come with higher interest rates or stricter repayment terms due to the bankruptcy filing appearing on your credit report.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_Sell_My_Car_During_Bankruptcy\"><\/span>Can I Sell My Car During Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nSelling your car during bankruptcy is possible, but it needs to be disclosed to the bankruptcy trustee, and the proceeds from the sale may be used to repay your creditors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_Keep_My_Car_If_I_File_for_Bankruptcy_with_My_Spouse\"><\/span>Can I Keep My Car If I File for Bankruptcy with My Spouse?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nKeeping your car while filing for bankruptcy with your spouse is generally possible, as long as you meet the criteria, such as being current on your loan payments or making payments through your Chapter 13 plan.<\/p>\n<p>In conclusion, when filing for bankruptcy, it is typically possible to keep your car, regardless of whether you choose Chapter 7 or Chapter 13 bankruptcy. However, the specific circumstances of your case and the equity in your vehicle will ultimately determine the outcome. It is crucial to consult with a bankruptcy attorney to understand how the laws in your state apply to your situation and to ensure the best possible outcome for your bankruptcy case.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When considering filing for bankruptcy, one of the most common concerns people have is whether they can keep their car. As bankruptcy laws can be complex, it can be challenging to determine what assets can be retained and what may be taken away. However, the good news is that in many cases, it is possible &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Can I keep my car in bankruptcy?\" class=\"read-more button\" href=\"https:\/\/namso-gen.co\/blog\/can-i-keep-my-car-in-bankruptcy\/#more-189616\">Read more<span class=\"screen-reader-text\">Can I keep my car in bankruptcy?<\/span><\/a><\/p>\n","protected":false},"author":49,"featured_media":107420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86279],"tags":[],"class_list":["post-189616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can I keep my car in bankruptcy?<\/title>\n<meta name=\"description\" content=\"When considering filing for bankruptcy, one of the most common concerns people have is whether they can keep their car. 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