In most cases, people who file for bankruptcy in Massachusetts do not lose their car. Although you may have heard stories about people from other states or people filing without a lawyer and losing their cars, an experienced Massachusetts bankruptcy lawyer will help you properly claim exemptions to avoid this.
Why? Because bankruptcy is a federal law, but it applies exemptions which are defined by state law. Therefore, property exemptions differ from state to state. An experienced Massachusetts bankruptcy lawyer knows how to properly claim exemptions to save your car in bankruptcy.
Even if your car is not fully protected by an exemption, you can usually keep it by filing for Chapter 13 bankruptcy rather than Chapter 7 bankruptcy.
And, if you have a car loan, your ability to exempt it is even greater because you only need to exempt your “equity” in the car, not its total value. If you want to keep the car, you will need to continue making your car payment on time to avoid repossession. Your personal obligation to repay the loan will be discharged, but the bank can’t repossess it if you maintain current payments.
Even if you are behind on your car payments, Chapter 13 allows you to “cure” your default and restore the loan to current status.
If you have questions about whether you can keep your car in bankruptcy, click here or use the handy form below to contact an experienced Marlboro bankruptcy lawyer for a free half-hour initial consultation and find out whether bankruptcy is the right solution for you.
Click here for more information about exemptions, the property you get to keep in bankruptcy.