Filing for bankruptcy often raises a critical concern: How can I keep my car in bankruptcy in Michigan?
You can keep your car in Michigan bankruptcy by using vehicle exemptions, reaffirming or redeeming the loan, or filing Chapter 13 to cure arrears while maintaining insurance coverage.
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Frequently Asked Questions
Can I keep my car in Chapter 7 in Michigan
Yes, if your equity fits within the exemption system you choose and you stay current on any loan and insurance. We verify the numbers before filing and address reaffirmation or redemption well in advance.
What happens if my car was already repossessed
Timing matters. If the lender has not sold the vehicle, a bankruptcy filing can often force return under the automatic stay. I act quickly and send notice to the tow yard the same day.
Is reaffirmation required to keep a car
Not always. Some lenders allow payments without reaffirmation. When they demand it, I negotiate safer terms or recommend Chapter 13 if a reaffirmation would strain your budget.
What is redemption and when does it help
Redemption means paying the current retail value in one payment to clear the lien. It works when the car is worth far less than the loan and you can access affordable funding.
Will the court take my car if it is paid off
If there is equity beyond the exemption amount, a Chapter 7 trustee could sell it. We avoid that outcome by using the best exemption choice or switching to Chapter 13.
Can insurance lapses cause me to lose the vehicle
Yes. Lenders often file stay relief motions when coverage lapses. We keep proof of insurance on file and respond immediately to protect you.
How long until I know my car is safe
In Chapter 7, you typically know within weeks after the meeting of creditors. In Chapter 13, the plan locks in protection at confirmation, usually within two to four months.
