Q: If I file bankruptcy, can they take my car. I paid my car off in 2005
A:
In bankruptcy, certain property is exempt (protected from creditors). The Pennsylvania exemptions don't provide specific protection for motor vehicles. Generally, a motor vehicle is treated like any other asset, which may be subject to sale by the trustee for the benefit of creditors.
However, a person filing for bankruptcy in Pennsylvania has the option of electing to use the federal exemptions rather than the Pennsylvania exemptions. The federal exemptions do protect a certain amount of equity in a motor vehicle.
Whether your car would be fully protected by the federal exemption depends on its value. You would also have to assess with your bankruptcy attorney what the other advantages and disadvantages of opting for federal exemptions vs. state exemptions might be.
Kevin Chern is an Illinois licensed attorney who has practiced in federal consumer bankruptcy law and consumer protection law for the last 21 years. He is the Managing Partner of UpRight Law. Kevin's law partners are licensed in all 50 states and work in conjunction with Mr. Chern to provide bankruptcy and consumer legal services in all 50 states. Mr. Chern's answers to the questions are intended for informational purposes only and are not intended to be legal advice. Use of the answers does not establish any attorney-client relationship. For legal advice, you should consult with an attorney licensed to practice law in your state and with appropriate expertise.
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