Can I keep my car if I file for bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Can I keep my car if I file for bankruptcy?

My car is 10 years old and it's fully paid off. The title is on my name only. Is there a way to keep my car if I file for bankruptcy, since I need it in order to get to work?

Mercado & Hartung, PLLC
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you can exempt it up to your state's allowed amount

Answer Applies to: Washington
Replied: 8/10/2011

Answer By Kevin Heupel
Heupel Law
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If your car is worth less than $5,000, then yes, you can keep your car even after filing for bankruptcy.

Answer Applies to: Colorado
Replied: 8/9/2011

Answer By Ray Fisher
Ray Fisher Law Offices
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yes

Answer Applies to: Texas
Replied: 8/1/2011

Answer By Glen A. Kurtis
Glen A. Kurtis, P.C.
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Yes, currently there is a 4000.00 exemption for an auto. So if your car is worth 4k or less it would not be affected by the bankruptcy. If it was worth more, you may have to buy back the excess from the trustee.

Answer Applies to: New York
Replied: 8/1/2011

Theodore N. Stapleton, PC
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Yes you can exempt your car form a chapter 7 bankruptcy case.

Answer Applies to: Georgia
Replied: 8/1/2011

Answer By Marvin Wolf
The Law Office of Marvin Wolf
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Bankruptcy allows people to keep property up to a certain value. These are called exemptions. Whether or not a debtor keeps the car depends on the value of the car compared to the amount of the exemption. There is also something called a "wildcard" exemption that you can add to the car exemption if the car exemption is not enough to protect the car. Exemption amounts change from time to time - The 2011 federal exemption amount for a car is currently $3,450, and the wildcard is another $1,150, and you can also apply up to $10,825 as an additional wildcard.if you don't use it up by exempting a home. As you can see, unless it's a high end late model Mercedes or Rolls Royce, most people get to keep the car in bankruptcy because of the generous federal exemptions. Congress knows you need to get to work - they just don't want you to drive a better car than they drive when you are in bankruptcy.

Answer Applies to: New Jersey
Replied: 8/1/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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Answer applies to Colorado bankruptcy filings only: Most debtors filing bankruptcy in Colorado get to keep their motor vehicles. Assuming you can file for bankruptcy in Colorado and that you are eligible to use Colorado Exemptions, you generally can claim a $5000 exemption for a motor vehicle (this exemption can be sometimes doubled if vehicle is keep & used by a spouse) . The exemption can be $10,000 if you are elderly or disabled.

Answer Applies to: Colorado
Replied: 8/1/2011


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If the car is worth more than $2,500 it could be sold in your bankruptcy. In Utah there is a $2,500 exemption in a car, which means that if the trustee sells the car, he has to pay you the first $2,500 before he can keep any of the proceeds. Trustees sometimes let the debtor "buy back" the equity in the car. For example, if your car is worth $4,000, there is $1,500 in equity above the exemption. The trustee might agree to sell it back to you for that sum.

Answer Applies to: Utah
Replied: 8/1/2011

Answer By Alan D. Walton
Breckenridge and Walton
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If it is worth less than $3450, yes if you use federal exemptions. .

Answer Applies to: Michigan
Replied: 7/31/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Believe me, the trustee does not want your car. First of all, it is exempt, meaning you get to keep it. Second, trustees get paid a percentage of what the sell and pay to creditors. There is not enough money in your 10 year old car for them to mess with. In answering this question I am assuming you don't own anything else of significant value.

Answer Applies to: California
Replied: 7/31/2011

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