Can I keep my car during a Chapter 11 bankruptcy?

In North Dakota, individuals filing a Chapter 11 bankruptcy may be able keep their car under certain circumstances. Whether or not an individual can keep their car throughout the bankruptcy process depends on a number of factors. The first factor to consider is the value of the vehicle. If the vehicle is worth above the state’s exemption limit for bankruptcy, then the individual filing for bankruptcy may have to surrender the car as part of their repayment plan. In North Dakota, the motor vehicle exemption is $4,000, so if the car is worth more than that amount, it may not be possible to keep the vehicle. Additionally, if the individual owns the car free and clear, without a loan or lien on it, they may be able to keep it. However, if the individual is making payments on the vehicle, they may have to continue making these payments to keep the car. The lender can object to this arrangement if they do not believe the individual can pay the agreed-upon payments. If the object is successful, the individual might have to surrender the car in repayment of the loan. Deciding if you can keep your car during a Chapter 11 bankruptcy in North Dakota ultimately depends on the value of the car and your ability to make loan payments. If the vehicle is worth more than the state’s exemption limit and is subject to a loan, you may not be able to keep the vehicle. Therefore, it is important to speak with a bankruptcy lawyer to determine the best plan for you.

Related FAQs

Can I keep my car during a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts