Legal Question in Bankruptcy in California

Can I lose my car in a Bankruptcy
I lost my job about a year and half ago and after my unemployment ran out I was forced on calworks to take care of my 2 children. I have about $10,000 in credit card bills. I was thinking about fileing a chapter 7 but was told that the bankruptcy trustee may sell my 2001 camry to pay back some of my bills. If I lose my car I will not be able to get back and force to work.

Asked on 10/03/07, 2:53 pm

2 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

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Re: Can I lose my car in a Bankruptcy

Typically, people who file a Chapter 7 bankruptcy are able to keep their car if their payments to the auto lender are current and sign a reaffirmation agreement to continue paying. If there no longer are any payments, then the debtor will have to decide whether the equity in the vehicle is exempt under California Code of Civil Procedure sections 703.140(b)(2) and (b)(5) (which incorporates (b)(1)). Often it is, so the debtor usually is able to keep the car.

Of course, there are other factors involved as to whether you would qualify for a bankruptcy, and the information I have provided is general in nature.

Answered on 10/03/07, 4:02 pm

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