Q: If I file bankruptcy in ky can they take my car if it’s my only means of transportation if their is a lien against it?

A: The answer depends on how much equity (difference between value and what you owe) you have in the car. If the equity is less than the exempt amount in Kentucky, you can keep your car. You should consult a local bankruptcy attorney for advice on this issue. Most bankruptcy attorneys offer free consultations.

A: The creditor with a lien on it can take it regardless of whether it is your only means of transportation. They have an ownership interest in it if they have a lien on it. Also, anyone who sues you and places a lien on property can take it, whether it is a tax lien, IRS lien, student loan, or whatever. Once a creditor obtains a lien on the property, they ask for a writ of replevin and take personal property. For real property, they file a foreclosure action. Just because you file bankruptcy does not automatically strip the lien, and you can't force a modification of a first home mortgage.

A: In Kentucky, when you file for bankruptcy, whether your car can be taken depends on several factors. If there is a lien on your car, the creditor holding the lien has a right to repossess the vehicle if the loan is not paid. However, in a bankruptcy case, certain protections may apply.

If you file under Chapter 7, also known as liquidation bankruptcy, you can often keep your car if it's considered necessary for your employment or daily life. Kentucky has specific exemptions that may protect your car up to a certain value. If your car's equity falls under this exemption limit, it's less likely to be taken to pay creditors.

In a Chapter 13 bankruptcy, which involves a repayment plan, you may have more options to keep your car. The repayment plan could include provisions to catch up on overdue payments or even reduce the total amount owed on the car loan, depending on the age and value of the vehicle.

It's crucial to discuss your specific situation with an attorney who can guide you through the intricacies of bankruptcy law in Kentucky. They can help assess the best course of action considering the details of your car loan, the value of your car, and other personal financial factors.

Remember, every bankruptcy case is unique, and the decisions you make can have long-term financial implications. Seeking professional legal advice tailored to your circumstances is always the best approach.