The answer is…it depends.
Although keeping your vehicle depends on certain factors, in almost all bankruptcy filings keeping your car is possible if not easy to do.
The two main factors in determining whether you can keep your car (or truck etc.) In West Virginia are:
1. The status of your payments. (Are you current or behind?)
2. The amount of equity you have in your vehicle.
Status of Payments
As a rule of thumb, if you are financing a vehicle and you are current on your payments you can keep your vehicle even if you file a bankruptcy. Actually, the same is true whether you file bankruptcy or not. If you fall behind on vehicle payments, the lender will want to repossess the vehicle.
Equity in Vehicle
The second main factor in determining whether you can keep a vehicle in bankruptcy is the amount of equity your have in your vehicle. Equity is determined by comparing the value of the vehicle to the amount that you owe the lender. If the vehicle is worth more than you owe, then you have positive equity. That equity is an asset that must be accounted for in your bankruptcy case. The bankruptcy laws in West Virginia are very generous with respect to how many assets you can keep when you file and, generally, the equity my clients have in their vehicles falls under the allowable levels.
David J. Hinkle
West Virginia Bankruptcy Lawyer