The answer is generally, yes.  But first, we need to determine whether or not you have any equity in the vehicle and whether or not you can afford to continue paying the note if it is being financed.  If you owe money on a vehicle, then the debt is considered “secured.”  That debt must therefore be paid in full, whether or not you are in bankruptcy, in order to keep the vehicle.  Generally, Louisiana allows a family to claim a $7,500 exemption on one automobile (there are exceptions for vehicles for a disabled person, but we won’t get into that here).  This means that, for example, if you owned two cars that happened to both be paid for and both were worth about $7,500 each, you could claim the $7,500 exemption on one of the cars (whichever one you wanted the most) and the other car would be subject to seizure by the trustee and sold to satisfy your outstanding debts.

Often times though, one car is paid for and the other is still being financed.  And often times the financed car has no equity or is under water, meaning you owe more than it’s worth.  In this case, if you wanted to keep both cars, you would claim the exemption on the car with the most equity and you would reaffirm the note on the financed car assuming you could afford it.  It is therefore important to call me if you are concerned over losing your cars in bankruptcy or from repossession.  A sharp bankruptcy attorney can often keep you in your cars while simultaneously getting you out of your other debt.  Often times I can develop a strategy for you that allows you to keep one or both of your vehicles.  Call me at 504-599-5906 to set up a free consultation.