Q: Will I lose my car in chapter seven?

A: Filing for bankruptcy relief (generally, you are entitled to a Discharge in eight years) is a pretty serious step, and must be based upon all your present circumstances together with your future expectations.

And the cost of even the simplest bankruptcy will be close to the current value of your car.

In addition, there are special Bankruptcy Code provisions pertaining to auto liens, although a car up to approx. $3,300 is "exempt" (under federal rules, but your State may preempt that).

Confer with an experienced Utah bankruptcy attorney about your issues and plans, after full disclosure of your facts.

A: Most likely not but you need to catch it up asap.

A: When you file for Chapter 7 bankruptcy, your ability to keep your car depends on a few factors, like how much equity you have in it and whether you can catch up on the missed payments. Since your car is worth about $2,700 and you're behind on payments, you might be able to protect it using a bankruptcy exemption. Most states have a "motor vehicle exemption" that allows you to protect a certain amount of your car's value.

If the equity in your car falls within this exemption limit, you may be able to keep it. Because you're behind on payments, you’ll need to work out a plan with your lender to catch up. If you can get current on your payments, the lender may agree not to repossess the car, even during bankruptcy.

It's important to communicate with your lender and let them know your intention to catch up on the payments. Sometimes, reaffirmation agreements can be made in bankruptcy to keep secured property like a car. Remember that if you do fall behind again, the lender could still repossess the car. Be sure to understand the terms and options available to you.