Can I keep my car when filing for bankruptcy?

When filing for bankruptcy in Maryland, the answer to whether you can keep your car or not depends on the type of bankruptcy you are filing for and the value of your car. The two most commonly filed bankruptcies in Maryland are Chapter 7 and Chapter 13. If you are filing for Chapter 7 bankruptcy, all of your non-exempt assets are subject to liquidation. In Maryland, you can exempt up to $6,000 in equity of your motor vehicle. This means that if your car is worth more than $6,000, the trustee may sell it to pay back some of your creditors. If you are filing for Chapter 13 bankruptcy, you may be able to keep your car if you keep up with your car payments. Chapter 13 allows you to repay a portion of your debt over a 3- to 5-year period. If you are current on your car payments and make all payments that are part of your Chapter 13 repayment plan, you can keep your car. Before making any decisions regarding bankruptcy, it is important to consult with a bankruptcy attorney in Maryland. An attorney can review the value of your car and your other assets and help you understand the best option for you and your family.

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Can I keep my car when filing for bankruptcy?

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