Most people have heard you can keep one car if you file for bankruptcy, or two if you are filing jointly with a spouse. It is true that most states permit you that, up to usually $5000 or $7500 per car or so depending upon the state. But that refers to equity. If you owe more money on the cars than the equity you have in them, you are not limited. Say you bought a car for $15,000, which is worth on Kelly or Edmunds bluebook about $10,000 now. If you owe $10,000 on that still, you have no equity in it. You might have three cars in a situation like that. If so, as long as you reaffirm the debt, and your auto lender is fine with you continuing to own the car and pay your car payment, you can keep all three cars.
Problems arise when you own cars that you have paid off, and/or you have more than the legal limit of equity in them. For more information, check out this article.
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