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  • Joseph Michelotti

Can I keep my car if I file bankruptcy?

In a Chapter 7 bankruptcy, you may be able to keep your car if you are current on your car loan payments and you are able to continue making those payments. If you are behind on your payments, the lender may ask the bankruptcy court for permission to repossess the car. You may also be able to protect your car through exemptions, which allow you to keep certain assets in bankruptcy. Exemptions vary by state, so it's important to check the laws in your state to see what exemptions are available to you.

If you are unable to continue making your car loan payments and you are not able to use exemptions to keep the car, you may be required to surrender the car to the lender. However, you may be able to negotiate a voluntary repossession with the lender, which can help you avoid the cost and hassle of having the car repossessed.

It's important to note that bankruptcy is a serious financial decision that can have long-term consequences. It's a good idea to speak with a bankruptcy attorney before making any decisions about whether to file for bankruptcy and what assets you may be able to keep.


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