If I file an individual bankruptcy, what happens to a car that is in both mine and my husband’s names?
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If I file an individual bankruptcy, what happens to a car that is in both mine and my husband’s names?
I was thinking of filing Chapter 7 bankruptcy for just myself and not my spouse. We have a paid for vehicle under both our names. Would this be subject to the bankruptcy?
Asked on November 1, 2011 under Bankruptcy Law, Florida
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
Your interest in the vehicle will definitely be an asset of your bankruptcy estate. What extent you have an interest depends on the laws of your state (i.e. whether it is a community property state or separate property or other).
Whether the vehicle is at risk of being sold depends on its value and what exemptions you have available under applicable law to protect the equity.
Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections. Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
Your interest in the vehicle will definitely be an asset of your bankruptcy estate. What extent you have an interest depends on the laws of your state (i.e. whether it is a community property state or separate property or other).
Whether the vehicle is at risk of being sold depends on its value and what exemptions you have available under applicable law to protect the equity.
Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections. Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
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