October 11th, 2011 by Questions
do people lose their cars or truck when they claim bankruptcy
Posted from: Ontario
October 11, 2011 at 10:26 am, A licensed trustee said:
Most people do NOT lose their cars when they file. Here are some simple guidelines:
1) if you have a loan against the car and you want to keep the car then you will have to continue to make the loan payments
2) if the car is leased and you want to keep the car you will have to keep making the lease payments
3) if you own the car free and clear (no loans or charges against it) and it is worth less than $5,650 you may keep it if you file for bankruptcy
4) if you own the car free and clear and it is worth more than $5,650 you will have to pay the excess into your bankruptcy (for example, if your car is worth $8,000 then you’d have to pay $8,000-$5,650= $2350 to keep the car)
I hope that helps. Make sure you ask whatever trustee you are dealing with to explain this in greater detail BEFORE you deicde to file.
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