Would my car be taken as an asset if I claimed bankruptcy?

Question

my car is my only asset i own, and i need it to get to and from to a job. so having it taken away wouldnt help me in this situation

Stuart Bierman · Answer

If a car is the only asset then a person filing for bankruptcy can  usually keep it, as long as the value of the car is less then $14,000 or  thereabouts.

William Rubendall · Answer

When you file bankruptcy you are allowed to keep all property that is exempt. The amount of the exemptions usually allow most people to keep all their normal  assets. Consult with an attorney as to the specific facts of your case.

Marc Stern · Answer

Probably not but it depends upon what it is worth and how much you owe on it.

David Benson · Answer

You have an exemption for a vehicle that protects a certain amount of equity in your vehicle. So if you take the value of your car, subtract the amount still owing to your car lender, and then subtract the amount of your exemption (currently $3,450 in Ohio) and your wildcard exemption (currently $1,175 in Ohio), you will have the amount due the trustee. If the amount due is significant, the trustee will ask your attorney to propose a payment plan so you can keep your car.

Daniel James Wilson · Answer

In Colorado you have an exemption for up to $5000 EQUITY in your car or cars, $10000 if you file as a married couple.

Edward Olson · Answer

Most people keep their car.  It depends on what other assets you have and how much equity you have in your car.      Talk to an attorney and you can get a more specific answer.

Norman Linder Hull · Answer

If you owe money on your car, you would have to reaffirm the debt. If there is equity in the car, the amount you could preserve from the bankruptcy Trustee would depend on the exemptions you have available. Consult a bankruptcy attorney.

Jeffrey Solomon · Answer

In a chapter 7 bankruptcy in Florida you have an exemption of $1,000 in the equity in a motor vehicle.  You might be able to exempt an additional $4000 if you do not take a homestead exemption.  The fact that you need the car is not relevant to the trustee.  You might have to raise funds for the chapter 7 trustee to keep the car. In a chapter 13 payment plan, you retain the vehicle.  You should consult an attorney about your case.

Paul Stuber · Answer

If you owe a secured creditor on the car you would lose it if  you did not  continue to pay or reaffirm. Otherwise you can claim an exemption on  the  car. Every state has a different amount that you can claim on the value of   the car. Most people are able to keep their car.

Barbara Fontaine · Answer

Your car is almost sure to be exempt in bankruptcy, so you could keep it.

William C. Gosnell · Answer

You are entitled to personal property exemptions.

Robert De Groot · Answer

Usually you can claim up to a 1000 bucks of equity in a single motor vehicle and 1000 bucks in personal property. But if you do not have a homestead, you can claim an additional 4000 in personal property. If you still owe on the car, there may not be enough equity in it. There are ways to keep the vehicle. Hire an experienced bankruptcy attorney.

Harry Roth · Answer

Unless you own a very expensive and fully paid for car, it is very unlikely that you would lose it in a bankruptcy. Never say never, but you need not worry here.

Roger Bus · Answer

Your car most likely (unless it is a 2012 Corvette or high priced sports   car) would be completely exempt- and not taken by the bankruptcy trustee. See  11  U.S.C. 522(d)(2) and (5).

Loren Zahn · Answer

It is often possible to keep much, if not all, of your possessions after filing for chapter 7 bankruptcy. The key is the proper usage of the exemptions. An experienced bankruptcy attorney is of significant help in this area.

Steven Alpers · Answer

You should be able to protect a car under C alifornia law. You can protect over 22,000 property.

Diann Moseley · Answer

Generally speaking, no. If the value of your vehicle minus any liens on the vehicle is less than the available exemptions for assets in your state, then your vehicle is protected. Exemptions are used to protect your property from seizure by the trustee. Your car is exempt if your state's exemptions are enough to cover any equity you may have in the vehicle. Suppose your vehicle is valued at $10,000 and you owe $6,000.00 on the vehicle. Your state's available exemptions would be applied to the $4,000.00 in equity you have in the vehicle. Thus, the vehicle would be exempt from seizure. On the other hand, suppose you used all of your available exemptions to protect other assets, like cash in a bank account, and there were no available exemptions to protect the $4,000.00 in equity in the vehicle, the vehicle could be taken. You stated that the vehicle was your only asset. Remember, assets include furniture, clothing, jewelry, bank accounts and more. It is unlikely that your vehicle is your only asset. That being said, in all likelihood, a competent attorney would be able to properly apply the available exemptions to protect your vehicle.

Phong Thanh Tran · Answer

In Texas, your car is exempt from the bankruptcy estate.

Jared Dwain Bellum · Answer

When you file a bankruptcy petition, you list all your assets, with their current value.  For certain assets, there exists certain exemptions.  Exemptions allow you to keep a certain asset if the value is below the statutory amount.   When you draft your petition, you must elect to choose between the Washington state exemptions or the Federal exemptions.  Depending on your assets, either set of exemptions may be more beneficial.  In your example, if you elected to choose the Washington state exemptions, under RCW 6.15.010, you would be able to protect $3,250 in equity in up to two vehicles if you are filing a single individual, and up to $6,500 if you are filing jointly with your spouse.  Continuing with the vehicle example, if you elected to choose the Federal exemptions, you wpuld be able to protect $3,450 in equity in your vehicles if you are filing as a single individual, and up to $6,900 if you are filing jointly with your spouse.  The whole matter of exemptions is a moot point if you are making payments on your car.  If the amount that you still owe on your car exceeds the current value of the car, there is no equity that needs to be classified as exempt.  You would simply state in your petition that you intend to reaffirm the debt.  Long story short.....yes, there are ways that you can keep your car if you file for bankruptcy.

Michael Chekian · Answer

You may want to declare bankruptcy "exemptions" to protect the car if it has equity.  You may want to "reaffirm" the debt if you filed a Chapter 7 bankruptcy, and if there is a car loan which you can afford.  A reaffirmation agreement is filed with the court, and is an agreement between you and the creditor that you will be "on the hook" for the payments despite your Chapter 7 case.  If you have a Chapter 13 bankruptcy, you will need to address any car loan or lease in your bankruptcy plan.  If you have an attorney, you should consult him or her for advice.  This is not a guaranty, warranty or prediction of the outcome in your legal matter.  Do not rely on this information as advice for your specific legal matter.  Consult a lawyer for specific legal advice about your situation.  Chekian Law Office and Michael Chekian, Esq. are debt relief agencies under the Bankruptcy Code helping people file for bankruptcy under the United States Code.

Charles Schneider · Answer

If it is not worth more than $3,450 probably not.

Diane Drain · Answer

It depends on the value of your car and the debt, if any owed against your car.  Also, it depends on the state where you live.

Cary Smalley · Answer

Generally, one vehicle per debtor is exempt.  However, if you are making payments on it you must continue do so after filing bankruptcy.  I suggest you consult with a bankruptcy attorney to discuss the details of your situation.

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Would my car be taken as an asset if I claimed bankruptcy?

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