Can I keep my car?


Yes. What you must do to keep the car varies depending on whether there is non-exempt equity in the car.

Will the trustee take the car?

If there is no equity in the car, after subtracting any car loan and exemption from the car's present retailvalue, the bankruptcy trustee will not take the car. The Ohio exemption is $1,000 equity in one car, for either a single or joint filing.

If there is equity in the car over and above the value of the exemptions available, a debtor can usually buy any unprotected equity from the Chapter 7 trustee.
 

Will the creditor take the car?

If you still owe money on the car, you can choose to reaffirm the debt to the secured lender, keep the car, and continue paying under the existing terms; or you can buy the car from the secured creditor in a single payment for its present value (redemption).

If you choose, you can surrender the car and be free of any obligation to pay for it, even if it is later sold for less than what is owed on it. You will not have to pay the deficiency.

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