What happens to my car if I file bankruptcy?

Most of the people who file bankruptcy can keep their car. If you file under chapter 7 bankruptcy you can keep your car if you have no equity or equity below the exemption amount. If you are behind in your car payments the lender may repossess the vehicle until you file for bankruptcy. As part of the procedure you will either abandon, redeem or reaffirm the debt on the car. If you are leasing your car you should have no equity in the car and you can keep the leased care as long as you make the contractual payments.

In chapter 13 bankruptcy your car payments will become part of the repayment plan