Can I Keep My Car if I File for Bankruptcy in New York?

If you file for Bankruptcy in New York there are several options for you to keep your car.  Much of this depends on whether you file for a Chapter 7 or Chapter 13 Bankruptcy.  If you file for a Chapter 7 (Liquidation) and you have less than $4,000 in equity (equity= value of the car minus what is owed on the car is equity) then there is no problem and you can keep your car.  If a married couple files jointly then there is an $8,000 exemption (amount of equity doubles).  Similarly, if the car is equipped for a handicapped person then up to $10,000 in equity can be exempted.  There is also the option of redeeming the car or if there is only a small amount of equity in the car the trustee may abandon it (meaning you get to keep the car) or you can purchase it from him at a discount.

In a chapter 13 Bankruptcy you get to keep the car regardless of the value.

If you are considering filing for bankruptcy in New York and would like a free, no-obligation consultation contact my office at 212-244-2882.