A deficiency in the law was corrected today. Now, if you file for bankruptcy and your car is worth less that $5,650, and there are no liens against it, you may keep it. If your car is worth more than $5,650 and you want to keep it, you will have to pay your trustee the difference. (Under the old rules, you had to give it to your trustee.)

This rule change will give people who have to file for bankruptcy a better chance of starting over without any additional pressures being put on them.

If you would like some more information about this topic or have any other bankruptcy related questions, e-mail or call us at 310-PLAN.