Re: If I file ch.7 will I have to close my bank accounts and lose my car?

You are entitled to $3,000 in personal property exemption under Alabama law. That means you can keep up to $3,000 of your personal property when you file bankruptcy. Thus if your car is worth more than $3,000 you might lose it. But as always there is more to it than just that. The car's value must be determined, and generally speaking the Trustee (the guy who runs the bankruptcy) has to make a decision as to whether it is worth going after your only car. They don't like to do that. It ultimately depends on how much the car really is worth and how much debt you have. If the car is a Lamborghini worth $50,000 then I would say you're going to lose it. If it is a Chevy Malibu from the mid-90's, then probably not. You also may get a relative to "buy" the car from the Trustee if he's going to be difficult about it.

You will not have to close your bank accounts.

I noticed you are in the greater Bham area. If you'd like, I'd be happy to discuss this matter further with you. My bankruptcy fees are quite reasonable. Please don't go to a big time bankruptcy advertiser as you will just not get the advice you need. My phone is 205-458-1100.

Sterling L. DeRamus

Attorney at Law

sderamus@bellsouth.net

Re: If I file ch.7 will I have to close my bank accounts and lose my car?

I noticed Sterling Deramus has already answered your question and his information is "on point" and the current law in Alabama.

If you are married, both you AND your spouse can exempt $3000 each for a total of $6000. So if you are married you can each claim 1/2 of the car and cash in your bank account up to $6000.00.