{"id":430,"date":"2011-10-05T12:37:35","date_gmt":"2011-10-05T18:37:35","guid":{"rendered":"https:\/\/debtfreecolorado.com\/?p=385"},"modified":"2022-04-12T06:22:03","modified_gmt":"2022-04-12T12:22:03","slug":"keep-car-colorado-bankruptcy","status":"publish","type":"post","link":"https:\/\/debtfreecolorado.com\/keep-car-colorado-bankruptcy\/","title":{"rendered":"Can I Keep my Car if I File Chapter 7 Bankruptcy in Colorado?"},"content":{"rendered":"

\"CarIn Colorado, almost everyone who wants to keep their car after filing for chapter 7 bankruptcy<\/a> is able to do so. Whether you keep it or not depends on the actions of three players: you, the bankruptcy trustee, and the lender.<\/p>\n

First, you need to decide whether you want to keep the car. If you owe far more on it than it\u2019s worth, your interest rates are too high, or if it\u2019s a lemon, you might be better off letting it go in the bankruptcy and replacing it.<\/p>\n

Second, the bankruptcy trustee will be interested in whether you have any equity in the car. That is, is the car worth more than you owe on it? If so, do you have more equity than is protected under your state\u2019s exemption statute (the law that determines what\u00a0 you \u00a0get to keep in a bankruptcy)? \u00a0If you don\u2019t have any non-exempt equity<\/a>, the trustee is not going to be interested in your car. If you do have non-exempt equity, most trustees will allow you to \u201cbuy it back\u201d from the bankruptcy estate. This is a matter of discretion and local practice, so you should consult a knowledgeable bankruptcy attorney<\/a> in your area to discuss the matter.<\/p>\n

Finally, do you still owe money for the car? If so, the lender can influence whether or not you decide to keep the car. When you file for chapter 7 bankruptcy<\/a> in Colorado, all of your dischargeable debts will be wiped out. This includes not just credit card and medical bills, but also the debt you owe on your car and your home. However, even though you will no longer owe any money on your car, whether you keep your car after filing bankruptcy is largely up to you. The three most common options for your car after bankruptcy are to reaffirm, \u201cride through\u201d, or surrender, and which one you choose depends on the lender\u2019s disposition.<\/p>\n