Will I lose my car when my ex files Bankruptcy

Bankruptcy is a very tricky subject that can present a lot of complications. If your ex-spouse is planning to file for bankruptcy, then some of your assets, including your car, may be in danger of getting repossessed.

However, there are several factors that will have to be considered to determine the status of the car you own once the bankruptcy would be filed.

Car will clear titles

In case the title of your car is clear and the ownership of the vehicle is solely on your own name, then there is no risk of losing the car. Since you are legally divorced from your spouse, any step taken by him/her would not really make much difference to you. Your car would be completely safe and will be in your name.

Cars with joint ownership

There will be several complications if the title of the car is in both names. If the ownership of the car is still in the name of you and your ex-spouse then there will be other things to be taken into consideration.

The first thing that you will have to think about is whether the car had been purchased while you had still been married and if it had also been financed on both your names.

Another factor to be considered is if during the divorce, the car had been provided to you with mutual understanding and an agreement or if it had been through a judge during the divorce decree.

If the car had been given to you with undivided interest, then you will have to get a certified copy of your divorce decree. The document would be available from circuit court clerk in any courthouse.

You would be required to present this document to the local office of a tax collector and then will have to get the title transferred on your name. This will ensure that the ownership of the car would be legally determined to be in your name so there would be no risk of repossession in the event that your ex files for bankruptcy.

He/she may be able to discharge the car note debt but your obligation on the car loan, if any, will continue and you will also retain the ownership of the vehicle.