Denver Bankruptcy Attorneys - Law Office of Andrew McKenna

    Free Initial Consultation


    Contact us today at 303-730-8819, or use our CONTACT PAGE to request your free Telephone Consultation with Andrew F. McKenna, The Bankruptcy Attorney.

  • Can I Keep My Car

    In most cases, you can keep your vehicle after filing for bankruptcy in Colorado.

    The Denver bankruptcy attorneys at The Law Office of Andrew McKenna will review your personal financial situation and help you decide upon the best course of action. While you may be able to keep your vehicle, the question you should more often ask yourself is whether it is in your own financial best interest to do so. Those who use the bankruptcy laws to their best advantage typically come out the other side with a new lease on life and a new understanding of best practices when it comes to managing their personal finances.

    Colorado bankruptcy: Keeping a leased or owned vehicle

    • Bankruptcy laws permit a $5,000 vehicle exemption. If your car has less than $5,000 in equity – and most do – you can keep the vehicle outright. So if you owe $15,000 and the vehicle is worth $20,000, you are fine. In practice, most people owe more than their cars are worth (the primary reason why you should consider whether you want to keep it – it’s a liability, not an asset).
    • Leased vehicles have no equity and can be kept. If you decide to turn the vehicle in, a judgment can be issued for the difference between the amount owed on the lease and the amount a vehicle brought at sale. This will be lumped in with unsecured debt in a Chapter 13 and you will repay pennies on the dollar.

    Denver Bankruptcy and my car: Chapter 7 or Chapter 13

    How you file for bankruptcy can also impact your choices.

    • Chapter 7: You may be entitled to keep your vehicle with a lower interest rate. You may also be able to have your loan restructured so that any negative equity disappears – leaving you to pay only the current market value of the vehicle.
    • Chapter 13: For those filing Chapter 13 bankruptcy, an older vehicle that is paid for should be fully protected.

    Contact a Colorado Bankruptcy Attorney Today

    If you need bankruptcy assistance in Denver or would like more information, call The Law Office of Andrew McKenna today at 303-730-8819 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code

    Denver Bankruptcy Help – 303-730-8819– Free Consultation


    20 Years of Experience
    NACBA Member
    Only represents consumers
    BBB Accredited, A+ Rating

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    North Metro Denver Office – 11154 Huron
    St. Northglenn, CO 80234

    South Metro Denver Office – 3801
    E. Florida, Suite 400, Denver, CO 80222


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