This is a frequent question we get from people, usually followed by “They can’t take my car or how would I get to work!” The reality is that most people do NOT lose their car when they file for chapter 7 bankruptcy in Portland, Oregon. But, like most things in bankruptcy, the law behind reality is much more complex so a true lawyer’s answer would be “It depends.” It depends on whether you have equity in your car and if so how much equity. It also depends on whether you have other assets which require protection from the chapter 7 trustee or not. To keep this as simple as possible let’s go through a flowchart:
The risk of losing your car in chapter 7 bankruptcy goes up as the value or equity in the car goes up. It also depends on whether you have more than one car and what other assets you own. If you went through the above flowchart and are concerned that you would lose your car but need to explore bankruptcy protection, then we can help. The Portland Bankruptcy Attorneys at Michael D. O’Brien & Associates are ready and able to advise you on how best to protect the assets you own while still receiving the protection of the Oregon bankruptcy court.