Hi, I’m Robert Geller. I am a consumer bankruptcy attorney in the Tampa Bay area today. I want to talk to you about whether you will lose your car if you will file a bankruptcy.
First let’s talk about cars and car loans. Many of my clients have car loans. So let’s say you have a Toyota and you’ve had it for a year or two and you’re making payments on it. You owe $15,000 on it and it is worth about $15,000. In this case, would certainly get to keep your car as long as you continue to make your payments.
But there are some limitations on what you can keep as far as your car is concerned when you file for bankruptcy. I think it is a good idea to talk to an attorney about your car.
Now let’s say you don’t have any car loan at all. If you do not own a home and you live in Florida, then potentially you get to keep a car worth as much as $6,000 – assuming you don’t have any loan on it. If you have a $6,000 car and you owe $6,000 you get to keep it.
Now if you have a $10,000 car and you owe $6,000, you would still get to keep it as long as you don’t own a home. But there’s a little bit more to it than that. This is why you have an attorney to help you through that process.
If you do own a home and your equity in your car is less the value of your car the situation is a bit more complicated. If you own a home, you only get to keep a thousand dollars’ worth of equity in your car. So if your car is worth potentially more than a thousand and you don’t owe any money on it, you could potentially lose the car. But not necessarily. That’s what you have me for to help you through that process. There are ways to deal with that kind of problem.
So let’s say you have a paid off car, that’s worth $10,000 and you own a home – this could potentially be a problem. But let me say this: Most people don’t have that much equity in their car, so it’s not usually a problem. But if it is an issue we can help you get through that issue. I’m attorney Robert Geller and I want to help you build a bridge to a brighter future. Thank you.