What happens to your car if you decide to file bankruptcy?  Understandably, this is a big concern for anyone thinking about filing bankruptcy in Riverside or the surrounding communities.  Having a car in California is a necessity if you work, go to school, or have children.  This is especially true in the Inland Empire where there is not a lot of public transportation or city centers. This is such a concern for many people that they completely ignore their bankruptcy options.  However, the vast majority of people who file for bankruptcy are entitled to keep their car.  If this is a concern for you, contact our office about your bankruptcy options and we can perform a free bankruptcy analysis to determine how exactly bankruptcy may affect you.


The bankruptcy law provides that people who file bankruptcy may exempt some of their personal items such as clothing, furniture, and even vehicles.  These exemptions vary by state.  In California, the exemptions are generous and allow most individuals to keep their car despite filing bankruptcy and without having to give anything to the creditors.  Without getting into the specifics, California bankruptcy exemptions provide that a person can keep a car even if it has a significant amount of equity (up to approximately $20,000).  The only case where that may not be the case is where you have significant other personal items or a home with equity.

Bankruptcy is designed to protect people who are struggling with debt and may have no other options.  Bankruptcy can help stop foreclosure of your home, stop creditors from suing you or garnishing your wages, stop repossession of your vehicle, and stop the non-stop phone calls from creditors.  The biggest benefit of bankruptcy may be the new chance and hope it provides to many of my clients.  If you are struggling with debt and do not see a possible end to your financial problems, call us to discuss your bankruptcy options.  Do not bankrupt your future or your opportunity to rebuild now by ignoring your legal options.

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