Will I lose my car?

If you are making payments on a leased car or a financed car that does not have a large down payment it is likely that you can keep your car. Bankruptcy law allows you to reaffirm the debt if you want to keep the car or it may make financial sense if the car to surrender the car back to the finance company and use the bankruptcy to wipe out any deficiency. If the car has more than a 1,000 in equity, then the car may not be exempt and may be sold by the trustee.

If you are considering filing for bankruptcy, I suggest consulting with an experienced bankruptcy attorney.

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