If I file for Bankruptcy will I be allowed to keep my vehicle? I purchased it with a settlement for a car accident I was injured in. I also have to have it to take my Son whho is Disabled to a from his Doctors appointments. I have no other assets. i have looked into all my options, but it seems this is my only option at this point. I have creditors calling all day and night, and just can't keep up. I was in a 15 year relationship that ended this last year, and my whole life got turned upside down. Having only one income paying the bills, instead of two, has proved to be too much to handle. Having a child who is Disabled, and requires Homeschooling, has not helped my situation. I do have a good friend who is a Bankrupty Attorney, but wanted to keep my issues private,and seek other council. I would appreciate any advice or help you could offer me. Thank You. Carly.

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Well, you didn’t mention which state you’re in, and even which type of personal bankruptcy you’ll be filing for.

Anyway, since you say that you own the car, if you go for a Chapter 13, your car will be safe.

However, if it’s a Chapter 7, whether you’ll be able to keep your car or not will depend on the motor vehicle exemption allowed in your state and the value of your car. In case your car is worth more than the automobile exemption limit applicable in your state, see if you can use the wildcard exemption. The combination of both might help you to keep the vehicle. If the value of your car is a little over than the allowed exemption, the trustee may still abandon the car.


In case you can’t exempt the entire value of the car, the trustee can sell it and use the non-exempt portion to pay your creditors.

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Last Updated on: Fri, 8 Jun 2018

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