One of the most frequent questions that any Washington bankruptcy attorney is asked during an initial consultation is whether or not someone contemplating filing for bankruptcy can keep their car. For the most part, the answer is yes.

In the vast majority of situations, clients who want to keep their car and who have the ability to stay current on their monthly payments are able to retain their automobile after filing for bankruptcy in Pierce County, Washington. Depending on whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, and depending on whether you utilize the federal exemptions or the state exemptions, their is typically a way to safeguard any equity in your vehicle from being seized by the trustee.

There are, however, a couple of exceptions to this general rule. While it is true that most people are indeed able to keep their cars after filing a Washington bankruptcy, if you have a very large amount of equity in one or more automobiles, then you may not be able to protect your vehicle or vehicles in a bankruptcy proceeding. Additionally, as noted above, if there is an outstanding loan on your car, then as with keeping a home or other real property in a bankruptcy, you must be able to make your regular monthly car payments in order to keep your car.

If you have questions about whether or not your vehicle or vehicles can be protected in a bankruptcy proceeding, you need to call and talk to an experienced bankruptcy attorney about the bankruptcy laws and your options.