Can I keep my car when filing for bankruptcy?

In Virginia, the answer to the question of whether you can keep your car when filing for bankruptcy depends on several factors, including the type of bankruptcy you file for and the value of your car. Generally, Chapter 7 bankruptcy allows individuals to exempt certain assets from liquidation. In Virginia, individuals are allowed to keep up to $6,000 in equity in one car. This means that any car worth more than $6,000 would have to be sold in order to pay creditors. Additionally, individuals filing for Chapter 7 bankruptcy may be subject to a “means test” to prove their financial need, so their car may be taken if it is determined they are not eligible for the exemption. When filing for Chapter 13 bankruptcy, individuals may be able to keep their car as long as they are able to continue making payments on it. This may require a reorganization of debt through the bankruptcy process, allowing the individual to keep their car. If a person is unable to make the payments, then the car may be repossessed. It is important to speak with a qualified bankruptcy attorney to determine whether you can keep your car in the event that you file for bankruptcy. The attorney can help you understand the laws in Virginia and will help you choose the best course of action for your financial situation.

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Can I keep my car when filing for bankruptcy?

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