The short answer is that in many instances, yes, you can keep your car. New York State laws permit you to keep a car with no more than $4,000.00 in equity (the difference between the car’s value and the loan payoff amount) when you file a bankruptcy.
In certain instances, those who file a Chapter 7 Bankruptcy can use Federal, rather than New York State, exemptions. They contain something known as Wildcard exemption which may permit you to keep a care with substantially more than $4,000.00 in equity.
If you lease the car and want to keep it and keep making the payment, often times you can keep it, especially if you need it to travel to work. Certain leasing companies may permit you to reaffirm the debt and thus let the payments positively affect your credit report and others will not.
Take a few minutes and call Zelenitz, Shapiro & D’Agostino at (718) 599-1111 to discuss your options. The call is free and there is no obligation.