Can I keep my car during a Chapter 11 bankruptcy?

Yes, in most cases, you can keep your car during a Chapter 11 bankruptcy in Massachusetts. In a Chapter 11 bankruptcy, you propose a repayment plan to your creditors. This plan allows you to keep certain property in exchange for continuing to pay certain creditors. If your car is a secured debt, meaning you are making payments on a loan, then you will be able to keep your car as long as you keep up with the payments included in the repayment plan. However, even if your car is not a secured debt, you may still be able to keep it during the bankruptcy. The U.S. Bankruptcy Code in Massachusetts allows debtors to keep certain amounts of property, which includes a car, if its value is below a certain amount. This amount is called an exemption and varies from state to state. In Massachusetts, individuals are allowed to keep up to $7,500 in equity in one vehicle. If the value of your car is below this amount, you may be able to keep it during your Chapter 11 bankruptcy. It is important to note that if your car is worth more than the exemption amount, the trustee in your case may try to take it and sell it in order to pay some of your creditors. In this situation, you will need to speak with your attorney about filing a motion to protect the value of your car. Overall, you may be able to keep your car during a Chapter 11 bankruptcy in Massachusetts, as long as it meets certain criteria. However, if your car is worth more than the exemption amount, you may need to take additional steps in order to protect it. Consulting with a qualified bankruptcy attorney is the best way to find out what will happen to your car during the Chapter 11 process.

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