I live in Kansas and I'm thinking about filing bankruptcy, but I'm worried about losing my car. Different people have told me different things about this
Chapter 7 bankruptcy is sometimes referred to as a liquidation, because the bankruptcy trustee has the power to liquidate certain assets in order to cover debts. Most Chapter 7 bankruptcies, however, are considered "non-asset liquidations," in that there are no assets to liquidate. That's because many of your assets are protected and exempt from liquidation. The bankruptcy law exemption rules are different in Kansas and Missouri, but you are generally allowed to keep some amount of equity in a vehicle, a home, home furnishings, tools, clothing, furniture and other household goods.
Nonexempt assets may not be subject to liquidation because they don't have liquidation equity. For example, if you own a second car with a wholesale value of $10,000, but you owe $10,000 on it, there is no equity in the vehicle. Therefore, the trustee would have no reason to liquidate it.
This advice is based upon limited and hypothetical circumstances. For an answer that is specific to your situation, please consult an attorney. The answering of this question does not create an attorney/client relationship, and the poster should seek additional information from qualified legal counsel. Many attorneys, like ours, offer no-cost consultations.
The Avvo Q&A is great for general information about the law and legal procedure. So, in that regard we can explain that as a general rule a debtor in bankruptcy is allowed to keep non-exempt assets. What Avvo Q&A is ill-equipped to do is give specific advice in a specific case, especially with only the information an asker chooses to disclose. Nothing short of a full case review with an experienced bankruptcy practitioner will meet your needs. That attorney can assess whether state or federal exemptions are available to you, and what the exemption(s) could be utilized to keep your car. If you do not know such a lawyer, use the attorney-finder at www.nacba.org and avoid law firms/bankruptcy mills that promote themselves with expensive advertising.
Best wishes for a favorable outcome, and please remember to designate a best answer.
This answer is offered as a public service for general information only and may not be relied upon as legal advice.
In Kansas, you can protect up to $20,000 in equity in a vehicle against a Chapter 7 Trustee. If you owe money on the car, you will have to pay for the car one way or another to keep it.
Most people who are current on their car loans before they file bankrutpcy are able to keep their cars by continuing to pay for them.
Most people do not lose their car when filing bankruptcy in Kansas. But, that results depends on many factors. We would have to determine how long you have been a resident of Kansas and whether or not you are eligible to claim Kansas property exemptions. We would have to determine the value of your car, the amount of any liens, and the amount of your equity. Perfection of liens on the vehicle would have to be verified. Your ability to pay also is considered as is your willingness to pay the lien. As with all things bankruptcy, the answer to your question is truly "it depends". Your bankruptcy attorney can give you a true answer to your questions after the facts are gathered.
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