When potential clients ask me questions about filing bankruptcy, one of their first few questions to me usually has to do with whether they can keep their car if they file bankruptcy.
In order to answer that question, I need to get more information from them:
1) What other assets do they have? This will help me figure out whether we will be using the Minnesota exemptions or the federal exemptions. I explain the difference between the two types of exemptions during an initial consultation.
2) How much is their car worth? To figure out the value of their car, I have them look up the private party (not trade-in or retail value) on the Kelley Blue Book website.
3) Do they owe money on a car loan? If yes, which bank do they owe, AND how much do they owe? The reason for this question is two-fold. First, it helps me determine how much equity (if any) they have in the car. Second, we can talk about what might happen with their car loan after they file bankruptcy.
I can’t make any promises to potential clients or to blog readers, but I can say that clients do not typically lose their car after filing bankruptcy unless they have wanted to surrender (lose/get rid of) their car. Now if someone called my office and they owned (outright – no loan against it) a brand new car, they could very well “lose” their car by filing bankruptcy. However, it is not very common for people in that situation to be thinking about filing bankruptcy.
Elizabeth Rosar Chermack is a Minnesota Bankruptcy Attorney, and can represent you in your bankruptcy matter. Call (952) 491-0390 or send an email to firstname.lastname@example.org to schedule a consultation with Liz.
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Elizabeth Rosar Chermack, Attorney at Law, is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code.