Video: Can I keep my car if I file for bankruptcy?
Generally speaking, once you file a bankruptcy, the automatic stay, the bankruptcy automatic stay, protects creditors from taking any actions against you. Immediately, if you own a car, you'll be able to keep it in the short term. If the car is leased, you generally will be able to keep the car through the bankruptcy, as long as you continue to make the payments under the lease. If there is a bank loan against the car, but you own the car, you're going to need to stay current with the bank loan. Otherwise, the bank can get permission from the bankruptcy court to foreclose the loan against the car.Ultimately, if there's more equity in the car than the bank loan, more than $1,000 worth of equity above the loan, you will ultimately have to deal with a bankruptcy trustee, because under Florida law, you have a $1,000 automobile protection. Anything above that, you'll need to negotiate with the trustee to ultimately keep your car.