Chapter 7 question

[ronstar7]

Hello all,

I am thinking of filing and I wanted to know if I will loose my car. I am current on it, but I heard they can take your house (dont have one) so I wanted to know if it is the same for a car.

I apologize if this question has allready been asked

Thanks!

[0REDSOX7]

It can depend on several factors.  And also, when you say, can it be taken, do you mean by the Trustee to pay off other creditors or by the lendor that may have a lien on it?

1) If you owe money on it (ie, is there still a lien on it)

2) Is it covered by the exemptions for personal property.

If you still owe money on it, you "may" be able to keep it if the positive equity in it is less than the allowable exemptions in your state.

If you're upside down in your car loan, it may be best to get rid of it, but, that would be your call as you'd need a car in the interim...

[juggalo9er]

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@0REDSOX7 wrote:

It can depend on several factors.  And also, when you say, can it be taken, do you mean by the Trustee to pay off other creditors or by the lendor that may have a lien on it?

1) If you owe money on it (ie, is there still a lien on it)

2) Is it covered by the exemptions for personal property.

If you still owe money on it, you "may" be able to keep it if the positive equity in it is less than the allowable exemptions in your state.

If you're upside down in your car loan, it may be best to get rid of it, but, that would be your call as you'd need a car in the interim...

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+1 varies by state

i will say i recieved a much better rate after my chapter 7 than i did before

[ronstar7]

Thank you, I am in NJ so I would have to find out the laws for this state. Also its a new car I am current on it and I have only had it a year in Sept. It is my first car and I really want to keep it as I dont see myself getting a new one anytime soon.

[juggalo9er]

you could try reaffirming on one car and not the other