If I file for bankruptcy and my vehicle is paid off will I lose it?

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If I file for bankruptcy and my vehicle is paid off will I lose it?

Or how much is allowed for it to be worth to be able to keep it?

Asked on October 5, 2010 under Bankruptcy Law, Illinois

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Generally, you have to choose between the Federal Exemptions and the State exemptions when filing for bankruptcy.  Some states do not allow yo to chose but I think that Illinois gives you the option.  It is my understanding that under the Illinois bankruptcy code you are entitled to an exemption for a motor vehicle up to $2,400.  You did not mention here the type of vehicle you own nor the age, mileage or condition.  You should do some checking on your own as to the blue book value as well to get an idea.  There is also a wild card exemption of up to $4,000 for personal property other than wages.  Speak with a bankruptcy attorney in your area.  Good luck.


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