Hello, my name is Marcy. I would like to talk to you about the various ways bankruptcy attorneys help you eliminate debt. My attorney helped me find all of the creditors that I needed to pay back. I was astounded at the number of creditors listed on the bankruptcy. Fortunately, my bankruptcy attorney assured me that my case was completely normal and possible to discharge through the court process. I hope to use this site to reassure others about their debt situation. I will share information about bankruptcy attorney services in an effort to help others tackle this difficult problem.
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Learning About Bankruptcy Attorney Services
What Happens To Your Car In Chapter 7 Bankruptcy?
Don Elliott
Filing Chapter 7 bankruptcy offers a way to start over financially, and it is often a great option for people that are severely in debt. Before making the decision, it is always wise to seek advice from a bankruptcy lawyer to find out how this would affect your personal situation. One of the questions you may want to ask him or her is what will happen to your car. While it will depend on your situation, here are some of the options that may occur.
You will be able to keep it
Chapter 7 bankruptcy will allow you to keep your car if certain conditions exist. One condition is that there must be very little equity in the car. In other words, if you owe $10,000 on your car and it is worth $10,500, the trustee will not want it. Cars without equity are useless to bankruptcy trustees.
To do this, you will need to reaffirm your debt with your car loan lender. This is easy to do, and your lawyer will assist you. It involves filling out a reaffirmation statement and sending it to your lender. If your lender signs it, you will get to keep your car as long as you continue making the scheduled payments on it.
An alternative to reaffirming your car loan is redeeming it. If you owe more on your car than what it is worth, redeeming it would be a good option. This allows you to pay a lump sum of money to the lender for the car. The lump sum is equal to the current market value of the car, but it must be paid all at once.
You will have to surrender it
On the other hand, if you do not owe any money on your car and it is worth some money, the trustee might force you to surrender it. The trustee can take your car and sell it. With the money raised, he or she will pay off some of your creditors.
You could buy it back
The other situation that can occur only involves car without loans. If you own your car outright, the trustee has a right to take it and sell it. If you really want to keep your car, the trustee might allow you to do so; however, you may have to pay the trustee for the value of the car.
Every situation in bankruptcy is different, which is why each case is handled uniquely. To learn more about bankruptcy and its effects on your assets, contact a bankruptcy lawyer such as William C Fithian III.
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