Business Address
Law Office of Randall A. Fischer P.A. At Stuart

2100 SE Ocean Blvd #203, Stuart,
Martin, Florida 34996
Phone: (772) 463-7737


Randall A. Fischer, P.A.

725 SE Port St Lucie Blvd #206, Port St. Lucie
St. Lucie, Florida 34984-5232
Phone: (772) 463-7738


Randall A. Fischer, P.A. Law Office At Jupiter

1080 East Indiantown Road #104
Jupiter, Florida 33477
Phone: (561) 316-7111


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Can they take my car in Bankruptcy?

Can they take my car in Bankruptcy?

Whether a creditor can take your car or you will lose your car in Bankruptcy is not a simple yes or no question. There are many factors which will determine whether the equity in your car can be reached by a creditor and whether or not they would even consider spending the time and effort to attach your vehicle.

The video below discuss one of the issues which is title to the vehicle. Is the vehicle titled in more than one person’s name and how is that titled. If there is more than one person on the title, then whether you’re potential equity in the vehicle is subject to how the vehicle is titled. If the vehicle is titled between you “and” another party, then your interest in the asset is 50%. However, if the title indicates multiple party ownership using the conjunctive “or”, then either you or any other owner can transfer the asset. This distinction comes into play when determining the equitable stake in an asset.

Another factor in determining the equity is the wholesale value of the asset. In south Florida, most trustees use the Kelly Blackbook value. This is reasonably accurate. However, with each vehicle there can be factors which reduce the value including the operating condition, the overall condition, the mileage, etc… These factors are taken into account when determining the value of the vehicle. For the Bankruptcies I file here in Stuart, Port St. Lucie and Jupiter, I maintain an online annual subscription to the Kelly Blackbook. This gives us the up to date adjustments made to any vehicles value.

The other major consideration is whether or not the vehicle is liened (i.e. there is a loan on the car). The equitable value of the vehicle is the Kelly Blackbook wholesale minus the conditional adjustments minus the lien on the vehicle divided by the number shared owners. This is roughly the process used to determine the equitable value of the vehicle. If the lien exceeds the value of the vehicle there is no equity to attach. Then, when you file for a chapter 7 Bankruptcy, you reaffirm the loan through the bankruptcy. You can also choose to let the vehicle go and discharge your obligation to the lender for any potential deficiency owed on the vehicle (the difference between the value of the vehicle and the amount owed on the note).

If you are facing a financial dilemma and are looking for a lawyer in Stuart FL, Port St. Lucie FL, or Jupiter FL, please give me a call.

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