Can I keep my car if I file Bankruptcy?

Can I keep my car if I file Bankruptcy?

You can keep all personal property that is exempt.

Is the Bankruptcy Trustee going to take my car if I file Bankruptcy?

Under statute, every person residing in Kansas shall have exempt from seizure and sale upon any attachment, execution or other process issued from any court in this state certain personal property.

Fortunately, Kansas exemptions are quite gracious so there is a good chance you may keep your vehicle. However, there are restrictions. Your interest may not exceed $20,000 in value. You are limited to one vehicle that you use regularly for transportation, generally for work.

If you and your spouse are filing a joint bankruptcy, this exemption may be doubled. If your vehicle has been designed or equipped for handicapped persons the $20,000 value cap does not apply.

If you have a third vehicle – it would generally be considered non-exempt. Does that mean you won’t be able to keep it? Not necessarily. Other options may be available, it may depend if you are filing a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, how it is titled, and its use.

Our Kansas City Bankruptcy Attorneys can let you know what you can expect based on your particular situation, so give us a call for your free consultation. If you are in Missouri, we would be happy to talk about your car too – but be forewarned – Missouri personal property exemptions aren’t so friendly.

2017-07-17T20:57:09+00:00 By |Bankruptcy FAQ|