Can I Keep My Car Under Chapter 7 Bankruptcy?
If you are declaring Chapter 7 bankruptcy in New York, there are things you need to know when it comes to your car. In every Chapter 7 Bankruptcy , a Trustee is appointed to administer you case. When you file Chapter 7, all property that you own as of the filing date belongs to the Trustee. While in Bankruptcy, you cannot sell any of your property. Part of the Chapter 7 Trustee’s responsibility is to liquidate and sell what is considered “nonexempt property” in order to satisfy the claims of your creditors. When it comes to motor vehicles, the Bankruptcy Code allows you to retain your vehicle under certain situations. You Own Your Car Outright Suppose that you own a motor vehicle that is fully paid off and you own outright. Can you keep it in a Chapter 7? The answer to that question depends upon what the fair market value of the vehicle is. Under New York Law, a Bankruptcy Debtor can retain a motor vehicle with equity up to $4,825.00. You may be able t...