Lemont Bankruptcy Lawyer On Keeping Property After Filing

Can I keep my car and all of my other property after filing bankruptcy?  You can keep personal property so long as the value of that property does not exceed allowable exemptions and/or any money that is owed on the personal property.  

For example, if you bought electronic equipment, say – call it very electronic – very expensive electronic equipment.  If you owe no money on it, the question is whether or not if it’s within the allowable exemptions.  If you owe money on it, you add the amount that you owe to the exemption to determine whether or not there’s any equity. 

If you have a car, the same analysis is in play.  How much is that car worth, are there any liens against it, and what is the applicable exemption?  Once you have determined all of those things, you know whether or not you would lose the item to a bankruptcy trustee who would try to sell the item. 

Specifically with regarding – with regard to the car, however, a creditor is going to want to make sure that you have full coverage insurance with the loss payee listed as the lender, meaning that if you wrap that car around a telephone pole, to whom does the insurance check go?  In order to be allowed to keep the car, you have to have that – the lender listed on the insurance as the loss payee.  It does not cost anything extra to add the lender as loss payee.  

You also have to be up to date with your payments.  So assuming you are up to date with your payments and you have the lender listed as the loss payee on a full coverage policy, if there is not enough equity for the trustee, you’ll be allowed to keep your car.

 See Lemont Bankruptcy Lawyer or call (847) 520-8100.