Whether you can keep a vehicle or vehicles in bankruptcy depends on the amount of equity you have in those vehicles and the applicable exemptions available to you.

Answer Applies to: Indiana
Replied: 1/3/2012

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If the value exceeds what you can exempt, the court can take it and sell it. You need to see and retain an attorney who understands how to maximize exemptions and find out if you do, or do not, have a problem.

Answer Applies to: Georgia
Replied: 12/30/2011

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Repossession by a secured lender is possible with a vehicle with a loan in default or breech, except for such protection afforded by the automatic stay. If the vehicle's paid off or has equity notwithstanding a security interest, exemptions may be applied to protect the asset within limits.

Answer Applies to: California
Replied: 12/30/2011

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Yes. If the value of the vehicle exceeds the applicable exemptions, then you can lose your vehicle. Exemptions are different from state to state, so get a free consultation with an experienced local bankruptcy attorney. The good news is most debtors do not lose their vehicles in bankruptcy.

Answer Applies to: Colorado
Replied: 12/29/2011

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In a Chapter 13 you won't lose it. In a Chapter 7 it depends on the value of the car.

Answer Applies to: Florida
Replied: 12/29/2011

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It would not be repossessed but you are only entitled to have $2500 in equity in a vehicle under Utah exemption laws. Therefore if your car is worth more than the $2500 the trustee may require that you purchase the remaining equity (pay money to trustee) or if you are unable or unwilling they can take the vehicle and sell it at auction and any amount over the $2500 would be retained by trustee for the benefit of all creditors.

Answer Applies to: Utah
Replied: 12/29/2011

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All assets are listed in bankruptcy. Assets can be claimed as exempt which allows you to keep them. Consult with an attorney prior to filing bankruptcy to determine whether specific assets can be claimed exempt.

Answer Applies to: California
Replied: 12/29/2011

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If your vehicle has been paid off it will not get repossessed if you file bankruptcy. However, the trustee will look at how long ago the vehicle was paid off. If the trustee determines that your car shouldn't have been paid off (your paid more than you should have on the car instead of paying other creditors) they can (but may not) make a motion that vehicle creditor return the money so that it is distributed to other creditors.

Answer Applies to: California
Replied: 12/29/2011

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Yes, it is possible to lose it. The vehicle must be exempt under either state or federal law (if applicable) in your jurisdiction to protect it. You need to consult with a qualified bankruptcy attorney to analyze your exemptions to determine if the vehicle can be kept.

Answer Applies to: Texas
Replied: 12/29/2011

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If you have already paid your vehicle, the creditor can not repossess it. However, your vehicle is an asset. You will want to be sure that you have enough exemptions to cover the value of the vehicle. If your vehicle is an asset, you will have to buy back the asset portion or surrender the vehicle to your trustee. This is important to determine prior to filing your bankruptcy petition.

Answer Applies to: Florida
Replied: 12/29/2011

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If the vehicle is worth more than the auto exemption in your state, you may be at risk of losing your vehicle in a Chapter 7 bankruptcy.

Answer Applies to: Oregon
Replied: 12/29/2011

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It wouldn't get repossessed by the lender, because the lender has already been paid off. If the equity was substantial, it is possible you could lose it to the bankruptcy court, but the likelihood is that will not be a problem. However, without knowing what the vehicle is worth, and what other assets you have, it is impossible to give you a definitive answer. Why not contact a bankruptcy attorney such as myself and if nothing else take advantage of the free consultation. It sure beats doing this yourself, doing it wrong, and then having to go to a bankruptcy attorney later and having to spend even more money trying to fix it, assuming it can be fixed.

Answer Applies to: California
Replied: 12/29/2011

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If there is equity beyond the vehicle exemption amount, you may have the arrangement for payment to the trustee or agree to surrender the vehicle.

Answer Applies to: Ohio
Replied: 12/29/2011

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Most likely you will keep it. You haven't said how much it is worth. If that is your only asset of consequence you have $23,500 of "wild card exemption" to cover it's value.

Answer Applies to: California
Replied: 12/29/2011

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Depending on the value, you will be able to keep the car even though it is paid off.

Answer Applies to: California
Replied: 12/29/2011

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Whether or not you get to keep your vehicle in bankruptcy depends upon whether it is an exempt asset. You must elect to claim either the federal or Wisconsin exemptions. Determining which exemptions to claim will likely depend on the fair market value of your vehicle and other assets. If the value of the vehicle is equal to or less than the value of the exemption your vehicle will be safe from "repossession". When the loan is paid off you are no longer at risk of repossession by the creditor, but you run a risk of losing a non-exempt asset to the trustee who will sell it to pay other creditors. If your vehicle is worth more than the allowed exemptions, you are allowed to buy it back from the Trustee for the difference between the exemption value and the value of the vehicle. You should consult with an attorney about which exemptions are best for you and whether your car is protected. One of the biggest complaints I hear from people who do their own bankruptcy is about losing assets that are not properly listed as exempt on the bankruptcy schedules.

Answer Applies to: Wisconsin
Replied: 12/29/2011

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It cannot be repossessed because you do not owe anything on the loan the car secured. In Colorado a debtor is entitled to a $5000 car exemption, $10000 for a married couple. That means the trustee in your case cannot force you to surrender your car for the benefit of creditors unless it is worth more than the exemption. If the car is worth more than the exemption you may have to pay the trustee the difference, usually in installments.

Answer Applies to: Colorado
Replied: 12/29/2011

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Depending on your overall assets, your car may become part of the bankruptcy estate. You should consult with a bankruptcy attorney to determine this.

Answer Applies to: Massachusetts
Replied: 12/29/2011

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If the car is paid for, it will not be repossessed in a bankruptcy. However, the questions becomes can you protect the value of the car. You are allowed to protect assets in a bankruptcy so the issue is the total net worth of your assets. If the value is below your exemption limit, then you can protect all of your assets including the car. If you exceed the value of what you are able to protect, some of the assets will be liquidated by the court to pay off creditors.

Answer Applies to: California
Replied: 12/29/2011

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Your car will be exempt up to a value of $7.500.00 of equity. There are some different variables that may apply.

Answer Applies to: Oklahoma
Replied: 12/29/2011

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There are exemption laws that specify amounts and types of property that you can keep in bankruptcy. There are also two different sets of exemption laws, federal and state, to choose from. Both sets of exemptions allow you to exempt a vehicle up to a certain dollar value. The federal exemptions also have a "wild card" exemption that can be applied to anything, including a car. Whether or not you would lose your car in chapter 7 depends on how valuable the car is and what other property you are trying to exempt. The majority of people who file for bankruptcy protection are able to exempt all of their assets and don't lose anything. You need to sit down with a bankruptcy lawyer and go over everything you own to find out if it is exempt.

Answer Applies to: Minnesota
Replied: 12/29/2011

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If you file a Chapter 13 bankruptcy case the Debtor retains possession of all personal property. If you file a Chapter 7 bankruptcy, your keeping the car depends on its fair market value (check www.nada.com), the value of any lien on the car, and the applicable exemption, which varies according to what state you are deemed to have residence in. This can become a complicated issue if you have moved from one state to another, because sometimes your exemptions are in accordance with the prior state you lived in, depending on period of residency in the new state as of the date your bankruptcy case is filed. You should contact a qualified bankruptcy attorney as soon as possible to discuss these issues.

Answer Applies to: Ohio
Replied: 12/29/2011

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It matters what chapter bankruptcy you are filing and how much the car is worth. You should consult with an attorney to discuss your options.

Answer Applies to: Florida
Replied: 12/29/2011

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If your car is paid off, then it is likely it will be exempt but that depends on the value. Talk to your attorney and see what exemptions you are entitled to.

Answer Applies to: New York
Replied: 12/29/2011

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You can exempt up to $2400 in equity in one car in Illinois plus $4000 for all other property - this can be applied to a car. So if your car is worth more than $6400, you might have to "buy out" your interest from the trustee in a bankruptcy case. Many trustees won't administer what they consider to be "small cases" - so your car might be safe anyway.

Answer Applies to: Illinois
Replied: 12/29/2011

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It depends upon how much it is worth and your other assets.

Answer Applies to: California
Replied: 12/29/2011

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If you have paid off your loan then it won't be repossessed. However, you will need to try and exempt it from the bankruptcy filing, otherwise the trustee could seek to have it sold. Contact a bankruptcy attorney to make sure you understand the process.

Answer Applies to: California
Replied: 12/29/2011

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No, your car cannot be repossessed b/c there's no longer any lienholder. However, you will have to look at its fair market value to determine if its exempt in a Ch 7 bk. In Illinois, we have a $2400 vehicle exemption and an additional $4000 wildcard exemption that can be applied towards any personal property, including vehicles.

Answer Applies to: Illinois
Replied: 12/29/2011

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There are exemptions under California law (applicable in bankruptcy) that allows you to keep vehicles up to a certain amount of equity in the vehicles. Unless it is a very expensive luxury vehicle I would not worry too much about it. However, you need to consult with a bankrutpcy lawyer and tell him/her what property you own including bank account balances. The lawyer will tell you if you can exempt the vehicle and keep it or if there is a risk that it will be taken and sold (which rarely happens and the person filing for bankruptcy should know if it will happen before filing if represented by a lawyer). Any competent bankruptcy attorney will be able to tell you exactly what will happen after you file if you tell the lawyer the truth and nothing but the truth and disclose all the required information in the petition truthfully. There should be no surprises.

Answer Applies to: California
Replied: 12/28/2011

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Absolutely! Your car is an asset. All assets are to be assumed by your appointed bankruptcy trustee in order to liquidate and pay off your creditors. However if you retain a competent bankruptcy attorney, they will use specific state or federal statutes, depending on which set of statutes best covers all assets, to exempt and protect your assets. Note: you cannot mix state and federal statutes, and can only elect federal statutes if you live in an opt out state. Good luck and thanks for tuning in!

Answer Applies to: Connecticut
Replied: 12/28/2011

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No, the car will not be repossessed. But if the car is paid off and you cannot exempt it, the bankruptcy trustee will sell it to pay your creditors.

Answer Applies to: North Carolina
Replied: 12/28/2011

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As long as you have room in your exemptions you can keep your car.

Answer Applies to: Maryland
Replied: 12/28/2011

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Your car should be fine as long as the value of your car fits into the exemption scheme. Under CCP 703 exemptions you have about $26,000 woth of value you can exempt. This sum must include your vehicles and money in the bank etc.

Answer Applies to: California
Replied: 12/28/2011

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If you have an exemption you can claim for the full amount of the value of the car, then no. You would need to find out what the exemptions are in the state where you live or if you can use the federal exemptions to know if you have enough dollar amount of exemption available.

Answer Applies to: California
Replied: 12/28/2011

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You may need to do some bankruptcy planning if you do not have sufficient exemptions to exempt the value of your vehicle. Your vehicle cannot be repossessed if you do not have a loan secured by the vehicle.

Answer Applies to: Florida
Replied: 12/28/2011

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You are generally allowed an exemption of one vehicle in bankruptcy (two if you are filing jointly as husband and wife).

Answer Applies to: Kansas
Replied: 12/28/2011

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It depends on if you file chapter 7 or chapter 13

Answer Applies to: Georgia
Replied: 12/28/2011

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The job of the bankruptcy trustee is to marshal any assets with sale value (i.e. with equity in them), liquidate them, produce cash, and distribute the proceeds. That makes your paid-off vehicle a prime asset to sell, should you file for Chapter 7 bankruptcy protection. But I strongly doubt it would be sold by the Chapter 7 Trustee if it is your sole vehicle. And if you were to seek Chapter 13 reorganization then you would be able to keep your vehicle no matter what.

Answer Applies to: Illinois
Replied: 12/28/2011

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If your car is paid off and you owe no creditor any money for it than it can't be repossessed. New York allows for a $4,000 exemption in equity in a vehicle. If it is worth more than $4,000 you run the risk of having the trustee take the vehicle and selling it and giving you your $4,000 in equity. You should speak with an experienced local bankruptcy attorney about the specifics of your case as there are ways around losing the car and require planning.

Answer Applies to: New York
Replied: 12/28/2011

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If the car is paid off, then it cannot be repossessed. It can, however, be taken and sold by the bankruptcy trustee to satisfy other creditor claims. The services of an experienced bankruptcy attorney can be invaluable in protecting your property.

Answer Applies to: California
Replied: 12/28/2011

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It cannot be legally repossessed by the car creditor if it is already paid off. There are other reasons a car could be in jeopardy in bankruptcy, however, such as if the value of the car exceeds the allowed exemption you would use to protect it in bankruptcy. You should discuss your situation with a bankruptcy attorney who will ask you questions like: How did you pay off the car? What is the approximate value of the car? etc.

Answer Applies to: California
Replied: 12/28/2011

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The car can't be repossessed if it's already been paid off. The primary issue with a paid off vehicle is what it's fair market value is and whether or not you have enough exemptions to cover the value. In most cases you will have sufficient exam option value. If you don't, the trustee can take the car, sell it, give you back the amount that's exempt and use the rest to pay your creditors.

Answer Applies to: Washington
Replied: 12/28/2011

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