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Phone: 703-204-2040
The Strong Law Firm, PC

I’m ready to file for Northern Virginia bankruptcy. However, in order to recover afterward, I really need reliable transportation. Will I be able to keep my car?

Whether you can keep your car despite filing for bankruptcy depends on several potential factors:
  • If you own the car outright: For instance, if you hold the title to your car and are filing for Chapter 13 repayment bankruptcy, then the car usually is not considered part of bankruptcy proceedings. If you do not hold the title yet because you still are making payments, then your ability to keep the vehicle may become a little more complicated.

  • What type of bankruptcy for which you are filing: If you are filing for Chapter 7 liquidation bankruptcy, then even if you hold the title to your vehicle, it may be seized as part of the liquidation process. However, you will be allowed to keep it if it is valued under the exemption limit for your state. 

  • If you can still afford to make payments once you have filed: If your car is not paid off at the time of filing, then you will choose between one of three options: 1) pay off the remaining balance in one lump sum; 2) reaffirm the loan with the lender and continue to make regular payments; or 3) surrender the vehicle to the trustee.

  • How much the car ultimately is worth: For example, in Virginia, the exemption limit for motor vehicles is $6000, or $10,000 if you need it for your job or education.

If you are tired of endless debt, then it may be time to meet with a Northern Virginia bankruptcy attorney at the Strong Law Firm. We help clients understand their options for dealing with Virginia, Washington D.C., and Maryland debt. For a private, no-cost consultation, call 877-344-8189 today. You can also reach us online with the online contact form.

Michael Strong
Senior Attorney, Strong Law Firm