Q: Can my car be repossessed if I file for bankruptcy? It's my only source of income, so I don't want to dig myself in
deeper if I'll lose it after bankruptcy.
A: You may reaffirm (keep paying) the debt and keep the car or you may claim an exemption upon the car if there is equity in the car.
A: The bankruptcy will most likely help you keep your car, but how you keep it may depend on which chapter you file. If you file Chapter 13 bankruptcy, you can pay off defaulted payments on the loan within 3 to 5 years. If you file Chapter 7 bankruptcy, you will need to negotiate payment arrangements with the creditor.
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