Q: In PA, if I have two car loans and file chap 7 can i keep one of the vehicles?
A:
If you have no other property, yes, you can keep both cars with the Federal exemption for equity in autos, plus the catch-all exemption, unused by any realty. There are other Fed exemptions that may cover your clothing, furniture, pc, etc.
That said, your questions strikes me as too simple, e.g., without any of the rest of your financial situation, all of which is encompassed by the Bankruptcy Code, and there are eligibility limits for each Chapter of Bankruptcy relief as well.
A consult with an experienced bankruptcy lawyer in PA, once counsel has a grip on your assts and debts, can explain about exemptions, discharges, eligibility, and so on, and I highly recommend that you do that at your earliest.
Timothy Denison agrees with this answer
A:
In Pennsylvania, when filing for Chapter 7 bankruptcy, whether you can keep one of the vehicles with a loan depends on several factors. Chapter 7 allows for the discharge of certain debts, but it also involves liquidation of assets to pay creditors. Your ability to keep a financed vehicle depends on your equity in the vehicle and your ability to continue making payments.
If you have little to no equity in the vehicle and you wish to keep it, you may be able to do so by reaffirming the debt. Reaffirming the debt means you agree to continue making payments on the loan as if the bankruptcy had not been filed. This allows you to keep the vehicle as long as you stay current on the payments.
However, if there's significant equity in the vehicle that exceeds Pennsylvania's motor vehicle exemption limit, the trustee might sell the vehicle to pay your creditors. It's important to consult with your attorney about your specific situation. They can help you understand how the exemptions apply to your vehicles and what options you have for keeping them.
Remember, each bankruptcy case is unique, and the decision to reaffirm a debt should be made with careful consideration of your overall financial situation. Your attorney will guide you through this process and help you make informed decisions.
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