If I file for bankruptcy will it take away my car? - Bankruptcy Law Questions and Answers- LawQA.com

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If I file for bankruptcy will it take away my car?

I own money on two cars, a ring and some other things of mine. I have over 5000 dollars in collections will the items be taken away and would I still have those collections?

Mercado & Hartung, PLLC
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You can exempt your car up to you state's allowable amount. If you are filing with a spouse, you can do both cars.

Answer Applies to: Washington
Replied: 8/24/2011

Answer By Marvin Wolf
The Law Office of Marvin Wolf
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1. If you don't file bankruptcy and owe money on a car, they can take it away (repossess). 2. If you do file a Chapter 7 bankruptcy and owe money or a car, they can file for relief with the court and then take it away. 3. If you file a Chapter 13 bankruptcy, and owe money on a car, you can start making payments again, and do monthly catch-up payments through the Chapter 13 trustee, while keeping the car (and paying for insurance). This is why people file Chapter 13 - to keep the car and get caught up on payments. Also, if the car was purchased more than 2 1/2 years before the filing, you could also modify the original contract to reduce the balance owed and even lower the interest rate - a major advantage for filing chapter 13. Other items you own would usually be exempt (protected) from collection because the court has a generous amount you get to keep in bankruptcy. All collection activity would stop and be monitored by the court.

Answer Applies to: New Jersey
Replied: 8/24/2011

Answer By Joseph W. Lehn
Lehn Law, PA
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Filing bankruptcy in Florida and using the Florida exemptions will provide you with $1,000 personal property exemption, $1,000 vehicle exemption, and $4,000 personal property exemption if you are not benefiting from the homestead exemption. If your assets exceed these exemptions: In a Chapter 7 - You have the choice of keeping the items and buying back their value or surrendering the items. In a Chapter 13 - You can buy back the items by making monthly payments for 3 to 5 years and retain all of your property. In either case, I would recommend you have your assets appraised by a trustee approved appraiser prior to filing to know what their actual retail value is.

Answer Applies to: Florida
Replied: 8/24/2011

Answer By Gary Lee Lane
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
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Not unless great value.

Answer Applies to: California
Replied: 8/23/2011

Answer By Mark Alonso
Financial Relief Law Center
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It depends on what chapter you file and what other property you own that you are trying to exempt. It is possible to keep your car when filing for bankruptcy and indeed there is an exemption that is specific to automobiles. Therefore, it is possible to exempt the equity in your auto. You may also be able to utilize the "wild card" exemption and apply it to the rest of your property, but you should start by taking a look at the exemptions and the equity in any property you have (value less any lien or loan attached to it). Being able to file for ch. 7 bankruptcy will depend on your income and if it falls within the guidelines for ch. 7. I would recommend speaking with an attorney to determine if bankruptcy is the best solution for you or if there are additional options.

Answer Applies to: California
Replied: 8/22/2011

Answer By Kevin Heupel
Heupel Law
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You're allowed up to $5,000 of equity in cars, but only $1,500 in collectibles. Thus, you would risk losing the collectibles by filing Chapter 7.

Answer Applies to: Colorado
Replied: 8/21/2011

Law Office of John C. Farrell, Jr.
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It depends on what type of bankruptcy you qualify for CH7 or CH13. With respect to the car the lender will certainly want the money you agreed to pay. MA law does allow someone to keep a car for necessities.

Answer Applies to: Massachusetts
Replied: 8/19/2011

Answer By Spencer Hale
Jackson White, PC
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If you decide to keep paying the car and ring payments then you can keep those items. Any unsecured debts from collection agencies will get wiped out.

Answer Applies to: Arizona
Replied: 8/18/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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A debtor who files bankruptcy is able to retain much of his property. If you own the car free and clear you have a $5000 exemption. That means that equity is not subject to turnover to the trustee. There are similar exemptions for clothing, household goods, and "articles of adornment" including jewelry. An attorney can help you evaluate if you have any assets which may be subject to turnover. Sometimes pre-bankruptcy planning can help minimize your exposure.

Answer Applies to: Colorado
Replied: 8/18/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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A bankruptcy filing does not mean that you automatically lose your motors vehicles. If you have a vehicle which is collateral for a loan and you do have not equity in the vehicle beyond the applicable exemption amount, then you can keep your vehicle by keeping the payments current. Reaffirmation of the loan might be necessary.

Answer Applies to: Colorado
Replied: 8/18/2011

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