I am going through a Chapter 11 Bankruptcy. Can my out of state vehicles be repossessed also?

A bankruptcy proceeding is a federal court action and it does not automatically exempt property registered in your name in other states. Since you are filing for bankruptcy under Chapter 11 and not Chapter 7, whether you get to keep those other two cars will probably revolve around whether or not they are part of your business operation and how much they’re worth.

You should definitely contact an attorney who’s an expert in handling Chapter 11 cases to see if there are any lawful grounds for you to exempt all of your cars. There’s a possibility that you might be able to keep them under a particular Reorganization Plan that’s agreeable with your creditors.

Whatever you do, avoid making the mistake of trying to sell those two out-of-state vehicles prior to filing for bankruptcy. Such activities can seriously bias a bankruptcy court against you. Furthermore, those types of sales or “avoidable transfers” can be reversed under certain circumstances.