Rhode Island Bankruptcy Information Center

Bankruptcy Law Blog of Former RI Chapter 7 Trustee David Hathaway

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Can you file bankruptcy but keep your car or truck?

January 12th, 2009 ·

Yes, in many cases you can. In Rhode Island, you can keep vehicles you own outright up to $12,000 under the state’s “motor vehicle” exemption. Even if your vehicle is worth more, you could potentially hold on to a vehicle valued up to $17,000 by also claiming the state’s $5,000 “wildcard” exemption.

If a creditor has a secured loan on your vehicle, you can often keep your vehicle through a bankruptcy as well. Debtors can choose to reaffirm an auto loan, and if the car payments continue to be made, the secured creditor would have no reason to repossess the vehicle.

Tags: RI bankruptcy exemptions · chapter 13 · chapter 7 · rhode island