Can I sell my car after filing Chapter 7?

In Chapter 7 bankruptcy, most or all of your debts are discharged. In exchange, the bankruptcy trustee is allowed to sell your nonexempt property and use the proceeds to pay your unsecured creditors. If the equity in your car is exempt, you can keep your car.

Then, can I sell my car while in Chapter 7?

Similarly, what happens to your car when you file Chapter 7? Keeping Your Car in Chapter 7 Bankruptcy In Chapter 7 bankruptcy, most of your debts are discharged (canceled). In return, you must give up nonexempt property -- the bankruptcy trustee sells the property and uses the proceeds to pay your unsecured creditors.

Then, how long can I keep my car after filing Chapter 7?

Under Chapter 7, the automatic stay and its protection can last until the debts in the case are discharged, which is generally about three months after the case is filed. In the meantime, Adam's attorney makes arrangements with the lender's attorney for Adam to bring the vehicle loan payments current.

How much does it cost to file Chapter 7?

For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $310. The Bankruptcy Trustee may charge a fee of $15 to $20 when you file, as well. You may request to pay the filing fees in installments; most courts will allow it if you can show it would be a financial hardship to pay all at once.

9 Related Question Answers Found

What happens when I surrender my car?

Surrendering your vehicle and repossession are very similar in financial terms. You are unable to make the loan payments, so the lender is taking the vehicle back. The lender will resell the vehicle, and the proceeds will go toward the balance you still owe on the loan.

How much my car is worth?

The result is a clear picture of what your car is worth, or how much you should pay. You may pay less for a car with an accident, or more for a car without one. Only CARFAX gives you the VIN-specific price for every used car based on its history.

Will Chapter 7 stop repossession?

If you are not making timely car loan payments, Chapter 7 bankruptcy cannot permanently prevent a car repossession. However, Chapter 7 can temporarily delay the lender from repossessing your car and allow you more time to negotiate or cure your default.

Do I have to give up my car in Chapter 7?

You don't have to give up all of your property when you file for Chapter 7 bankruptcy. Additionally, if you owe money on the car and would like to keep it, your loan will need to be current, and you'll need to be able to continue making payments after the bankruptcy case.

Can I keep my cell phone in Chapter 7?

All property that you own, including your cell phone, must be listed in your bankruptcy schedules. Legal exemptions are then applied to protect unsecured equity. Any property not encumbered by a lien or protected by an exemption is fair game for the Chapter 7 bankruptcy trustee.