Bankruptcy Vehicle Ownership Rules

Summary

In Alabama, if you file for bankruptcy, a vehicle solely in your name can be reaffirmed, allowing you to keep it and continue payments. For a jointly financed vehicle, both parties must agree to reaffirm it. If not, the vehicle may need to be surrendered or redeemed.

Full Conversation

Bankruptcy question
Hello ****, I'd be happy to help with your bankruptcy question. Could you provide a bit more detail about your situation? Also, could you please tell me where you are located? This will help me give you accurate information based on local laws.
Alabama
Hello ****, Alabama has its own set of bankruptcy laws:
- You may file Chapter * or * bankruptcy based on your income and assets.
- Alabama's exemptions include homestead, personal property, and insurance.
Could you provide more details about your financial situation for more specific advice?
What needs to happen when one vehicle is financed in your name and another is jointly financed
In Alabama, for bankruptcy:
- The vehicle in your name may be included in the bankruptcy estate, subject to exemptions.
- For the jointly financed vehicle, both parties' consent might be required to include it in bankruptcy.
Could you clarify the financial state of both vehicles?
Both are Current
If both vehicles are current on payments in Alabama:
- The single-financed vehicle can be reaffirmed during bankruptcy, maintaining your payment and ownership.
- For the jointly-financed vehicle, if both parties agree, it can also be reaffirmed. If not, it may be surrendered or redeemed.