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If I declare bankruptcy, can I lose my car?

If I declare bankruptcy, can I lose my car?

: Richard West Law Office

In most cases, you will not lose a car in bankruptcy unless that’s what you intended to do. Bankruptcy law provides certain protections for equity that we have in our cars. For individual, there’s a $3225 equity exemption for an automobile. Therefore, if your car is worth much more than that amount, then the trustee in a chapter 7 could take the car away from you. If you have a car that’s paid for and is worth more than this, you probably would not want to file a chapter 7 but would consider a chapter 13 bankruptcy which will allow you to pay little bit to your creditors and still keep your car even though it is s worth more than the amount that you could exempt, or protect, in a chapter 7.

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