Categories: Peter's Blog

Can I Keep My Car If I File Bankruptcy?

Yes, you can keep your car in Chapter 7 bankruptcy. Or, if you have a car that you owe too much on and want to get rid of, you can give it back and owe nothing. THE CHOICE IS YOURS!

If you have a car note, you can simply keep paying the car payment and keep it insured and you can keep it. Some car creditors want you to sign a Reaffirmation Agreement, which we never advise, but generally you can just make the payments and keep the car.

So, the effect of the bankruptcy is to cancel all your other debts (medical bills, credit cars, deficiencies on houses or cars, etc.), and allow you to keep your car.

If you own your car outright, it is protected up to a wholesale value of $5,000 or $10,000 for a married couple, or $10,000 per person if you are disabled or over 60. This absolutely covers most people and most cars we see in our offices at Mile High Bankruptcy in Denver.

For more information about this topic and to speak with Denver Bankruptcy Lawyer – Peter Milwid please call 303-831-0733 to see how we can help with Chapter 7 Bankruptcy filing in Colorado.

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Peter Milwid

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