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Whether or not you can keep your car in a bankruptcy really depends on your specific situation. Since it is considered an assets, it must be listed in the schedule of asset, along with any other property or assets you might own. If you owe money on the vehicle, then you will also have to list it in your schedule of debts. The short answer to this question is, yes, you can keep your car if you can afford it. However, as straightforward as that sounds, it is actually not that black and white.
If you are filing a Chapter 7 bankruptcy and owe money on those wheels, the good news is that this form of bankruptcy will discharge the unpaid balance on that debt. Unfortunately, the law also permits car lenders to repossess vehicles when a person files for bankruptcy unless they are able to redeem the collateral or reaffirm the debt.
If you want to keep your car and plan on filing for a Chapter 13 bankruptcy, you might also be able to keep your car. The repayment plan you draft for your Chapter 13 bankruptcy should provide for payments on your car loan and, after you make all of your payments, the discharge will not impact the unpaid balance on the loan. You can also surrender your vehicle to the lender in a Chapter 13 bankruptcy, which will eliminate the amount you owe on the loan.
If you are filing for bankruptcy, but are looking for options to hold onto your vehicle, contact the legal team at Bach Law Offices, Inc. to discuss your options. Our knowledgeable bankruptcy attorneys will help you choose the path that best suits your needs and goals.