Legal Question in Bankruptcy in Nevada

If I file Chapter 7 bankruptcy can I keep my car that is financed? We have 2 cars that are financed. I have been laid off for 16 months and if I don't get a job or an extension on my unemployment we are going to have to file bankruptcy because we cannot make the payments with 1 income. I have been paying almost $500 a month for 3 years on my car, the low book on it is about $12,000, I owe $16,000 and have already paid almost $17,000 for it, so based on that is there any way I would get to keep it because without the interest I have pretty much already paid the value for it. We will have to let the other one go, but it is junk anyway. I have a child that I will need to get to school, get groceries, etc. so I will need a car. Thank you.


Asked on 7/24/10, 9:20 pm

1 Answer from Attorneys
Dorothy Bunce

I am sorry, but in order to keep your vehicles after filing bankruptcy you must either reaffirm the debt to pay off the original contract amount or redeem the vehicle in cash for the fair market value of the car. So if it was worth $9,000, you could redeem it for $9,000 cash. Not always an easy thing to do.

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Answered on 7/25/10, 4:25 pm


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