Sierra Vista, AZ asked in Bankruptcy for Arizona

Q: I own a truck that’s paid off and has a value of $1,200 and I also have a loan on a Car that has negative equity.

I’m filing chapter 7 with no assets other than my truck. Will they let me reaffirm my Car Loan with negative equity, and keep my truck? Or will I have to give up my truck in order to keep my Car loan?

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2 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: You can use your exemptions to protect and keep the truck while reaffirming on the car debt (if you think that is wise). You can keep both.

Diane L. Drain
Diane L. Drain
Answered
  • Bankruptcy Lawyer
  • Phoenix, AZ
  • Licensed in Arizona

A: Your question is confusing and I need a lot more information in order to fully answer your question (plus, I am sure you have a hundred, plus more). If you have a vehicle with a loan and want to keep the vehicle, then continue to pay for it. Make sure to look at the applicable exemption allowance.

There is a Self-Help Center at the Arizona Bankruptcy Court. I highly recommend you meet with one of their volunteer attorneys.

My best, Diane L. Drain

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