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.
2 Answers from Attorneys
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.
Re: Can I lose my car in a Bankruptcy
Based on what you've stated, and reading between the lines ... No, the trustee will not sell your 2001 Camry.
Related Questions & Answers
-
How can I reopen a Ch 7 BK as an unlisted creditor? My wife and I sold a vehicle to... Asked 10/02/07, 12:37 am in United States California Bankruptcy Law
-
Credit Cards Can I exclude a credit card from bankruptcy? Asked 9/28/07, 7:19 pm in United States California Bankruptcy Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
