Keeping Cars in Chapter 7 Bankruptcy

[jdjeans]

we own 3 cars. one is old and paid for. two are upside down in the loan with no equity. there are 2 licensed drivers in our home.
will any of the cars be at risk in chapter 7? the payments are current and have never been late.
thanks

[aaron]

You shouldn't have a problem keeping the old, paid-for car, within the confines of your exemptions. For Chapter 7, you would ordinarily have to choose between surrendering the cars or continuing payment on your car loans. In situations where the loans are upside-down, many debtors decide to surrender the cars to the lender. (But you have to consider the effect of the bankruptcy on your ability to get a subsequent car loan, when deciding if that is a good choice for you.) Your bankruptcy attorney should be able to guide you through the specifics.