Many of my clients are concerned with this very question. In general, if you meet
the following 3 requirements, then you can keep your car(s):

  • The equity in the car(s) is exempt
  • You are current with the payments, and
  • You can keep making the payments. In most cases, I am able to utilize the laws in your favor to “exempt” your vehicle(s).

The bankruptcy will eliminate your personal liability for the loan, but it does not
disturb the lien. Thus, after bankruptcy, the mortgage lender still has its rights in
the property, including the right to repossess if you breach the loan agreement.

But, just filing bankruptcy is not a breach of the agreement in many jurisdictions;
failing to make the payments according to the loan agreement is a breach. So,
make the payments, keep the car!

Almost without exception, the secured creditor wants you to keep the vehicle and
keep paying on the loan. The lender is not looking for an excuse to repossess.

If you’ve been considering bankruptcy, please contact my office to schedule a
consultation. We will discuss your options and put together a game plan. I offer
FREE ½ hour consultations.

Please note: This information is not, nor is it intended to be, legal advice. You should
always consult an attorney for individual advice regarding your own situation. We are a debt relief agency. Among other services, we help people file for bankruptcy relief under the bankruptcy code.

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