Q: Bankruptcy
I have a 20k personal loan for my hyuandi and a car loan on a 2017. The 20k has my hyuandi on it that took a dump. If I file bankruptcy on my 20k loan. Can they take my new car, the 2017 as well or will I get to keep that car?
A: Depends on how much equity you have in the new car and your available exemptions under Illinois or federal law.
A:
When you file any sort of bankruptcy case, you sign Official forms under penalty of perjury that you've listed every claim against you, whether you acknowledge it or not, and every asset (broadly defined). IOW, you cannot declare bankruptcy on selected debts or assets.
The answer to your question depends upon whether, in your loan documents, you consented to a "cross-collateralization" of your auto debts. Your question does not mention anything about that.
Speak to an experienced attorney who handles such matters in your jurisdiction, and prior to that first meeting, divulge your full financial condition to the lawyer, with each asset, your estimate of its fair market value (NADI provides values for free for used cars), and your monthly payments for those as well as all other living expenses and debts.
(Beware- even in a Ch. 13, you can only "modify" a car lien debt if it is older than 2 years and 9 months).
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