It is no secret that filing for bankruptcy is a financial risk for many Americans, but the ramifications of this hurdle are not as dire as they seem. If you have filed for personal bankruptcy and are facing the prospect of losing your vehicle due to being unable to keep up with payments, there may be hope for you yet. Under Colorado laws, it’s possible to keep your house and car so long as the value falls within the applicable Colorado Homestead Exemption. You also need to be current with your monthly payments if you’re to keep the vehicle. For Arizona Bankruptcy and Debt Solutions: check out our Mesa bankruptcy law firm.
How Do Bankruptcy Laws Work?
Bankruptcy laws affect the availability of your vehicle once you have filed for bankruptcy. If you own a vehicle outright, then there are no restrictions to prevent its seizure by lenders. However, if you have an outstanding loan on your car (either through a bank or a credit union), it may be subject to seizure as part of the bankruptcy case. The bankruptcy law does not allow for the seizure of vehicles if you file a Chapter 7 bankruptcy case. However, in a Chapter 13 bankruptcy case, the creditor will be able to seize your car if it is still owed on the account.
Will You Get To Keep Your Car?
You could be thinking about filing for bankruptcy and may be wondering if you’ll still own your vehicle. This is a big concern for millions of Americans. The automobile you own can be protected from the creditors as long as you are currently on auto loan and you have attempted to work out a deal with your creditor to pay what you owe. However, if you have been court-ordered to pay a specific amount, then you may be forced to sell your vehicle.
What Should You Do to Keep Your Car?
In order for some of the more financially challenged people who are filing bankruptcy to keep their car, they are going to need a plan in place to pay back the debt that is owed. A lot of people think that it will be much easier to simply sell their car and move on with life because there is no need for them to keep it anymore.
Your car is only going to be worth a fraction of what you paid for it, which means that you will get only a small settlement for selling or trading it in. If you are concerned about keeping your vehicle and have the ability to work something out with the creditor, then you may want to contact them personally and try to work out an arrangement that can benefit both parties involved.
Is My Car Exempt From Liquidation?
People who file bankruptcy often have assets that are exempt from liquidation even after they have incurred debt over the years. However, this does not mean that all of those assets will remain in place once filing for bankruptcy protection is complete.
In order for someone to keep an asset like a home or a vehicle, they may need to pay off some of the mortgage balance or the amount of what is owed on a car loan. Once this is done, they are not as likely to have their home or car repossessed by creditors.
How Does A Car Lease Factor Into This?
The laws regarding leased vehicles are not exactly clear either, but they appear to be similar to those of non-leased vehicles. It’s important to remember that a car lease is a form of debt. When you lease a vehicle, you’re agreeing to pay off the purchase price over the course of the contract. The creditor or lender can take back the car if you fail to make payments as outlined in the contract.
Why You Should Hire A Bankruptcy Attorney
There are many ways to avoid the fate of bankruptcy. Some people try to take care of all their financial responsibilities on their own, which can be both time-consuming and difficult. Others may go in for a layaway or debt consolidation plan, but these solutions often come with lengthy contract periods and hefty fees.
Another option is to attend coaching sessions or workshops on personal finance from reputable companies – but who has the time for such long commitments? To avoid bankruptcy, it’s best to consult an attorney experienced with filing bankruptcy petitions.
Bankruptcy is an option that allows people with overwhelming debt loads to reinvent themselves without the crippling stress of owing money. A bankruptcy attorney can help clients file and settle for bankruptcy, which frees them from the burden of their creditors. It’s never easy to declare bankruptcy, but it’s necessary for many people who have run out of options.
A bankruptcy attorney will:
- Help you file and attend a mandatory appointment with the Office of the United States Trustee.
- Help you weigh your options
- Help clear up any confusion you might have about what you can or cannot do; and, most importantly,
- Ensure that your property is protected. Just because you can skip out on your debts doesn’t mean that unscrupulous people won’t try to take advantage of you.
Bankruptcy and credit law is so complicated that it’s easy to make mistakes that could cost you in ways other than just money. Going through the bankruptcy process without the help of someone trained to understand your case is like taking a swim with no life preserver or flotation device. There are many things that an attorney can do for you that you may or may not be aware of. If you are struggling to find your way out of debt, then hiring a bankruptcy attorney is the best option for you. Bankruptcy attorneys will help you overcome debt and get back on your feet- all without destroying your credit so that it can be built back up again.