Can I keep my car if I file bankruptcy?

Ford FusionYour car is an asset (even if you owe more than it is worth) in bankruptcy.

The value of this asset is based on the equity in your car.

 

You are allowed to claim as exempt a number of assets when you file bankruptcy.

Assuming your car is exempt, when you file chapter 7 bankruptcy and your car is financed, you will need to continue to make your payments. The lien holder may ask you to sign a reaffirmation agreement.

If you file chapter 13 your car can be paid through your plan of reorganization.

BACK TO FAQ


1016 La Posada Drive, Suite 140
Austin, Texas 78752
ph: 512-458-4138
fax: 512-458-4213
info@austindebt.com
Copyright 2014 Law Office of Nels C. Hansen P.C.
All rights reserved. Disclaimer
Posted December 2012|Updated 09/20/2014