Can I keep my car during a Chapter 11 bankruptcy?

Yes, you can keep your car during a Chapter 11 bankruptcy in Washington. Chapter 11 bankruptcy law in Washington allows debtors to maintain and keep their personal property, like cars, while going through the bankruptcy process. The value of the car and its equity must be determined by an appointed trustee to determine if the car can be part of the repayment plan or must be sold by the trustee to pay creditors. Your car must be listed on the paperwork that is filed in court in order for you to keep it during your Chapter 11 bankruptcy. Even if your car is not listed, you can still assert a wildcard exemption, which provides $3,500 in equity or net value of the car. This wildcard exemption lets you retain the car despite not having it listed in the appropriate paperwork. You should keep in mind that creditors may come after your car if you are behind on payments. Depending on the claim amount, creditors are able to seize your car and sell it to satisfy their claim amount. It is important that you continually make payments on your car during the bankruptcy process. If you do not, your car could be seized by creditors or the trustee and sold. Chapter 11 bankruptcy law in Washington protects your car during a bankruptcy, but if you do not follow the rules, it can be taken away.

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Can I keep my car during a Chapter 11 bankruptcy?

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