Yes. What you must do to keep the car through a Chapter 7 varies
depending on whether there is non exempt equity in the car.
Will the trustee take the car?
If there is no equity in the car, after subtracting any car loan and
exemption from the car's present sale value, the bankruptcy trustee
will not take the car.
If there is equity in the car over and above the value of the exemptions
available, a debtor can usually buy any unprotected equity from the
Chapter 7 trustee.
Will the creditor take the car?
If you still owe money on the car, you can choose to reaffirm
the debt to the secured lender, keep the car, and continue paying under
the existing terms; or you can buy the car from the secured creditor
in a single payment for its present value (redemption). With some
lenders, you don't even have to reaffirm the debt: you can
keep the car if you continue to make the payments called for in the
If you choose, you can surrender the car and be free of any obligation
to pay for it. After all, bankruptcy is a chance for a fresh start, and perhaps that includes freedom from a lemon or a gas guzzler.
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