Can I keep my car when filing for bankruptcy?

Yes, you can keep your car when filing for bankruptcy in California. Under California’s bankruptcy laws, debtors are allowed to keep their vehicles if their loan payments are current, and their vehicles are worth less than a certain amount. This amount is called the “exempt” value, and it was set by the state’s legislature. When you file for bankruptcy in California and you want to keep your car, you must let your bankruptcy court know. You will be required to disclose the car’s value, the loan balance, and the remaining payments due. The bankruptcy court will then determine whether the vehicle’s value is less than the exempt amount and if the loan payments are current. It is important to note that, while you can keep your car in most cases, the bankruptcy court has the power to seize and sell any property that is above the exempt amount. This means that, if your car’s value is over the exempt amount, it could be sold to pay off some of your debts. Finally, if you are trying to keep your car when filing for bankruptcy, it is important to make your loan payments on time. If you are behind on your payments, you could risk losing your vehicle.

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Can I keep my car when filing for bankruptcy?

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