Can I keep my car if I file bankruptcy?

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In a Chapter 7 case, if you are current on the vehicle, you will continue making your payments as usual if you sign a “reaffirmation agreement” stating that you want to keep the vehicle and continue making payments. In a Chapter 13 case it may be possible to reduce the payments to a more affordable amount. This is because in some situations the interest rate can be lowered, and also the amount paid back can be either the current Blue Book value of the vehicle or the amount owed on the vehicle, whichever is lower. This is very helpful for someone who owes more on the car than it is worth (“upside-down”).

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T.R. Weaver has practiced law since 2003. She is licensed in Washington State, and admitted to practice law in the United States Federal Courts to assist with the representation of individuals with Immigration challenges. She has been an adjunct professor at various Community Colleges in their Criminal Justice and Paralegal Programs. Ms. Weaver is available for speaking engagements, workshops and seminars.

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