You may already know chapter 7 bankruptcy is a liquidation process so your Washington trustee has the legal right to take any personal assets with large amounts of equity to repay your creditors – which can include your car. So what are the vehicle exemption laws for chapter 7 bankruptcy in Washington State?
If you are filing independently and you want to keep your car in chapter 7 then you may exempt up to $3,250 of equity in your vehicle, and if you are filing jointly with your spouse the amount is doubled to $6,500. Washington State is one of the many states that allow you choose between the state vehicle exemptions or the federal exemptions, but they do not allow you to mix the two.
Can’t Exempt your Car? Get Auto Financing after a Washington Bankruptcy
Unfortunately, these exemptions only help those chapter 7 applicants that have little to no equity in the vehicles. This is where BankruptcyAutoFinancing.com comes in. We have a network of Washington lenders that help bankrupt consumers whose cars were liquidated to repay their debt get into new or used auto loans at affordable rates.
If you are thinking about filing for bankruptcy or you’re currently in bankruptcy and your car may be liquidated you have options. Our Washington lenders can get you approved for an auto loan while in bankruptcy or after. Apply online today to see what you could be prequalified for.
Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.