2006-11-08 04:54:37 · 2 answers · asked by Maureen B 1 in Business & Finance ➔ Personal Finance
You are allowed to own a vehicle.
However the value of that vehicle (or the equity in a financed vehicle) must be equal to or less than the state's allowed exemption.
In California, depending on which exemption table used, that value is either $1900 or $2775.
Keep in mind that if your vehicle is financed, you probably do not have the amount of equity that would cause a problem. Most vehicles depreciate so much, so fast, you would probably owe more than the car is worth until the very end of the loan.
Additionally, if your car IS financed, you can keep the vehicle only if you continue to make the required payments. Because a car loan is a Secured loan, if you choose to no longer make payments, the bank can (and will) take steps to claim the collateral (your car).
2006-11-08 16:15:02 · answer #1 · answered by strangefire2004 2 · 0⤊ 0⤋
You can only have a car worth a certain value to file bankruptcy.
2006-11-08 13:31:23 · answer #2 · answered by Chris J 6 · 0⤊ 0⤋