Know your rights ·

Will bankruptcy let me keep my car?

General information for New Jersey, New York and Washington, DC · Last updated

Quick answer

It depends on equity, exemptions, loan status, the chapter, and how the secured debt is handled.

Do now

Obtain the loan contract, payoff, payment history, title, and a reasonable vehicle value. Ask about exemptions and the consequences of surrender, redemption, reaffirmation, or plan treatment where available.

Watch for

A discharge of personal liability does not automatically remove a lender’s lien. Reaffirming can create continuing personal liability; do not sign merely because a lender sends a form.

Official sources

US Courts — Chapter 7 Basics, US Courts — Chapter 13 Basics, US Courts — Discharge in Bankruptcy, US Courts — Bankruptcy Glossary.

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