Fortunately, in most cases, you will not lose your car by filing bankruptcy in Montana. In Montana, each debtor gets a $2,500 exemption in one vehicle. If a couple is filing jointly, they can each take an exemption of up to $2,500 in two separate vehicles, or combine their exemption for a $5,000 total exemption in a single vehicle.
The exemption applies to the portion of the vehicle that is free and clear of any lien. So, if you a vehicle worth $2,500, and don't have a loan against it, you can exempt the vehicle and keep it in a bankruptcy. Or, say you owe the bank or credit union $10,000 and the vehicle is worth $12,500. You could then exempt the "free and clear" portion of the vehicle and then still owe the remaining $10,000 on the loan.
You shouldn't let the fear of losing a vehicle keep However, bankruptcy does not make the security interest your creditors may have in your home or car go away. There are several ways to work out agreements with your secured creditors so that you can keep your home and car during and after bankruptcy. We know how important your home and car are to you and know of creative ways so that you can keep them through the bankruptcy process.