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If I File for Bankruptcy Can I Keep My Car?

by | May 7, 2021 | Banking Law, Consumer Bankruptcy, Updike, Tracy L.

Filing for bankruptcy can be an overwhelming process leaving you with many questions and worries. One of your biggest concerns may be surrounding what property and assets you’re able to keep through the bankruptcy process. Your car is an asset that’s essential to daily life, so naturally, you’re concerned about whether you’re able to keep your car.

Unfortunately, there isn’t a simple answer to this question. The good news is that with a strong bankruptcy lawyer on your side the likelihood of keeping your car is high. It’s essential to have a bankruptcy attorney who’s familiar with the system to help you navigate the process – beginning before you file for bankruptcy.

How will filing for bankruptcy help me?

Filing for bankruptcy can mean that overdrafts, wage garnishments, car repossessions, and foreclosures will stop. Then credit card debts, payday loans, medical bills, and select income taxes will be eliminated. With the help of a savvy bankruptcy lawyer, you’ll still be able to keep your car, home, and retirement!

Which type of bankruptcy should I file for?

Determining the most beneficial type of filing for your situation is a crucial first step. Many things play a role in determining this:

  • Do you still owe payments on your car?
  • What is the current market value of your car?
  • Is this vehicle considered a part of your business?
  • Has your car been repossessed?

The answers to these questions will help your bankruptcy lawyer know which type of bankruptcy is right for your circumstances. Sifting through your unique situation with a professional will put you in the best position to keep your car.

What are exemptions, and how will they help me?

An exemption in bankruptcy means that an item will not be included in the liquidation or be sold to pay off debts. There are many ins and outs of exemptions, and each type of bankruptcy has unique exemption options.

A few exemptions that may apply to your case and keeping your vehicle are:

  • The Motor Vehicle Exemption – Up to a $4,000 exemption
  • The Wild Card Exemption – $300 exemption allowed to be used for anything
  • The “Tools of the Trade” Exemption – Up to a $2,525 exemption for business tools

Each exemption has different qualifications and amounts that will be exempt from liquidation. Your bankruptcy lawyer will be able to determine which exemptions work best for your case.

How do I get started?

First things first, get the right bankruptcy lawyer on your side who understands the intricacies of bankruptcy law and will take the time to understand your specific situation.

I like to help people get a fresh financial start and get them the resources they need to stay on a solid financial path, rebuild their confidence, and reduce their stress. If you’re currently struggling with financial difficulties, please know that you don’t have to go it alone. We offer free consultations to assess your situation and determine the best possible solution for your needs.

Let’s discuss your situation.

Author: Tracy Updike, Esq.

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