Will I be able to keep my car after filing for Chapter 7 Bankruptcy?

In Washington, the answer to if you will be able to keep your car after filing for Chapter 7 Bankruptcy depends on several factors. When you file for Chapter 7 Bankruptcy, a court-appointed trustee will review your assets. Under Washington law, certain assets are protected so that you can keep them when you file for bankruptcy. The state of Washington allows you to protect a certain dollar amount of equity in your car if the value is less than $3,500. This means that if the fair market value of your car is less than $3,500, you will be able to keep the car after filing for Chapter 7 Bankruptcy. If the value of your car is more than $3,500, the trustee may sell the car and use the proceeds to pay your creditors. In this case, you may be able to purchase the car back from the trustee. However, you will need to follow the rules of the Chapter 7 Bankruptcy process, and you may need to provide proof that you can afford to purchase the car back. In addition, if you have a loan on the car, it is important to continue making payments if you wish to keep the vehicle. If you fail to make payments, the lender may repossess the car. Overall, you may be able to keep your car after filing for Chapter 7 Bankruptcy in Washington if the value is less than $3,500 and you continue to make timely payments on any loans secured by the vehicle.

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Will I be able to keep my car after filing for Chapter 7 Bankruptcy?

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