Can You Keep Your Car if You File for Bankruptcy?

Minnesota's Bankruptcy Law Firm for More Than 40 Years

We are proud to build on the reputation that we have earned in more than 40 years of practicing bankruptcy law in Minnesota. Personal property questions are one of the first topics that potential clients ask us about during initial free consultations at Prescott Pearson & Tande, PA

Our attorneys have helped more than 70,000 clients with bankruptcy, exemptions and related debt relief matters. We can help you find the solutions you need.

" Can I keep my house? Can I keep my car?" These and other urgent questions on the minds of people in financial hot water sometimes keep them awake at night worrying — until they receive the answers they need from a lawyer on their side.

It May Be in Your Best Interests to Let the Car, and Car Loan, Go in Bankruptcy

When you closely examine all the facts, you may conclude that it is in your best interests to let the car loan — and the car — go when you file bankruptcy. Perhaps you can borrow a car or take the bus for a time.

One thing you can practically count on, however, is that you will most likely receive aggressive offers from car dealers offering you new loans and "outstanding deals" once your bankruptcy is complete. If you let your car and your car loan go along with the rest of your debt that is discharged in bankruptcy, you may be ready to accept an offer of a new car loan. Or you may decide that it makes more sense to buy a used car that you can afford to pay for in cash a few months after your bankruptcy is discharged.

It May Fit in Your Budget to Reaffirm the Loan and Keep the Car

On the other hand, you may believe that it is in your best interests to reaffirm the car loan and keep the car. If you can keep up with car payments, and those payments fit within your budget, this may be an option. Whatever you decide to do about your car when you file bankruptcy, you can look forward to debt relief, a new budget — and maybe a new car. You may work out a way to keep your current car and continue making payments if your income allows.

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  • Minneapolis-St. Paul Area: 651-968-8096
  • Minnesota Toll Free: 888-366-0827

Are you facing car repossession? Are you worried about whether it makes sense to try to keep your car when you file bankruptcy? To learn more about protecting your assets and exemptions such as your car as you consider bankruptcy, call or email our bankruptcy lawyers today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.