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Can I Keep My Car if I File for Bankruptcy?

Woman checking papers

Question: I need to keep my car and I need to file bankruptcy as soon as possible. I have a lot of debt on my credit cards and from medical bills from doctors and a hospital. I had to have surgery at Northside Hospital. I live in Cumming, Georgia and I work in Alpharetta.

I need a car to drive to work and I need the car for visitation with my children. I need it to take the kids places. Since I'm divorced I need to handle many things on my own. I also need the car to help my parents who are elderly and live in Milton. I've got a lot of debt from a tanning salon I opened in Sandy Springs and from a liquor store I owned in Woodstock. Those businesses just didn't work out. But now I've got a job in sales with a tech company in Alpharetta off Windward Parkway, near Georgia 400. We do a lot of work with India, China and Mexico.

If I file a chapter 7 or chapter 13 bankruptcy I need to know if I can keep my car. My car is 7 years old and is a Ford, nothing fancy like my friends with their BMW, Corvette, Maserati, Mercedes or expensive truck. My monthly payment is about $200.00 and I'll have the bank paid off within three years. I bought it off a lease from a local car dealer. Can I keep the car even if I file?

Answer: Yes, based upon the information you have provided, you should be able to retain the car after filing for bankruptcy, which in your case would be in the Northern District of Georgia. Since you live in Cumming your Trustee meeting (the 341) would be at the federal courthouse in Gainesville. Bankruptcy is administered through the federal system. In fact, the U.S. Constitution creates bankruptcy courts.

Your payment for the car note sounds reasonable and would be unlikely to draw an objection from the United States Trustee. In fact, most people who file bankruptcy are able to keep their automobile, be it a car or truck. It is usually only a problem when the monthly payment is high or if there are multiple cars involved. The bankruptcy court understands that it is important for people to have a means of transportation to enable them to drive to work and to fulfill family obligations.

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We at the Sherman Law Group are experienced bankruptcy attorneys and we try to answer as many questions as possible on our blog. If you have a question, email it to us and we'll do our best to answer it. No names will be used. Speak to an experienced and knowledgeable Atlanta metro area bankruptcy lawyer at the Sherman Law Group by calling (678) 712-8561. We have offices throughout the region, including in Roswell, Alpharetta and Cumming.

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