Legal Question in Bankruptcy in Illinois

First, it depends on which chapter of bankruptcy you are filing. If you are filing Chapter 13, it doesn't matter because none of your assets are liquidated. If you are filing for Chapter 7, you will be able to keep it if you reaffirm the loan within 45 days of the meeting with your creditors. However, if you do this you will still be liable for the full amount of the loan and should not include your car in your bankruptcy estate.

If you are current on the car and file a chapter 7, you do not have to reaffirm and can keep the car as long as you continue making payments on the car. This way you can release your personal liability, and not be liable for the reaffirmation agreements.