Whether or not you will lose your car when you file for bankruptcy in Mecklenburg County, North Carolina, will depend on several factors, including the type of bankruptcy you file, the equity in your car, and your ability to continue making payments on your car loan.
If you file for Chapter 7 bankruptcy, your non-exempt assets, including your car, may be seized and sold to repay your creditors. However, you may be able to keep your car by claiming a car exemption, which in North Carolina is $3,500 per individual or $7,000 per married couple filing jointly. If the equity in your car is less than the exemption amount, you may be able to keep your car.
If you file for Chapter 13 bankruptcy, you may be able to keep your car by including your car payments in your repayment plan. As long as you continue to make your payments on time and according to the terms of your repayment plan, you can keep your car.
If you are behind on your car payments and are facing repossession, filing for bankruptcy may temporarily stop the repossession process, allowing you time to catch up on your payments or negotiate a repayment plan with your lender.
It is important to note that bankruptcy can be a complex and nuanced process, and the outcome of your case will depend on your individual circumstances. It is recommended that you consult with a qualified bankruptcy attorney to explore your options and determine the best course of action for your situation.
It is important to work with a qualified bankruptcy attorney who can help you. If you are interested in filing bankruptcy please contact Hishaw Law LLC at 1.307.228.0407 if your located within the state of Wyoming or 1.704.218.9883 if you live in the Charlotte, North Carolina area or email us at jhishaw@hishawlaw.com.
