In MO how will my car be treated in Ch. 7 - I have equity of approximately $6,000 after deducting value, payments left and exemptions.

Hi Dorothy, When filing chapter 7 bankruptcy in Missouri you have several options to consider when dealing with your car: (1) you can give up the car; (2) you can reaffirm on the car (keep the car and continue with your current payments); or (3) you can redeem the car (pay cash for the fair market value of the car, keep it, and own it ). If the car is already paid for you do not have to worry about the options above. If filing single, your car exemption is $3,000.00. That means you can have $3,000.00 in equity that the court will no touch. If filing married, you have a $6,000.00 car exemption. A bankruptcy Trustee may decide to sell your car and use the money to pay back your creditors if a significant portion of the value is not exempt. You should meet with a bankruptcy attorney to discuss your options in your particular situation. There are some other exemptions you may be able to add on to protect the value of your cars. -John Schleiffarth  Tel: (314) 561-9690