Last year I had some financial difficulties and I couldn't pay off my debt. The uncertainty of my financial future was adding to my already stressful life. After months of worry, I finally decided to contact a bankruptcy attorney. After discussing my options with the attorney, I decided to file bankruptcy. My name is Kyle Diggler and if you're struggling with debt and considering bankruptcy, I'm here to help you. I'm not an expert, but I want to share my story and my experience of filing bankruptcy with others who are in a similar situation. As you read my blog, you'll learn all about the bankruptcy process so that you'll know what to expect. I'll also share some tips to help you start your life over financially. I hope that my blog answers all the questions you have about filing bankruptcy.
There are several advantages to Chapter 13 bankruptcy, including the ability to save secured assets and t
When you are dealing with a lot of debt, it can be hard to know where to turn. Filing for bankruptcy seem
Chapter 7 bankruptcy is something that many people consider. It can be a way to help you with your past d
Are you having problems with your finances? If so, is it because you have too much debt? When people have
Sometimes parents hesitate to file chapter 7 bankruptcy because they're afraid the court will take their
A chapter 7 filing can carry with it the threat of property loss. Bankruptcy, however, is not meant to be a way to strip filers of their possessions and leave them destitute. Nevertheless, many filers are understandably anxious about losing things like their car. You know you need it; most people depend on their vehicles to get them to work, school, important appointments, errands, and more.
To help ease your fears about losing your car during a chapter 7 bankruptcy process, read on to find how you could be protected against such a loss.
Why Would They Take Your Car?
It can be difficult to understand why the bankruptcy trustee would be so cruel. After all, having to declare bankruptcy is already such an emotional and humbling experience. To help you understand, you might want to view things from the perspective of the bankruptcy courts and the creditors you owe money to.
Most consumers owe a great deal of money to creditors for things like credit cards, mortgage payments, and auto loans. When you declare bankruptcy, those creditors must take a loss. To help mitigate that loss, the bankruptcy codes provide a means of recouping some of the losses. Trustees are empowered to seize property, like your car, during bankruptcy. The property is then sold and the funds provided to creditors. There are several variables, however, that means that most bankruptcy filers are able to keep their cars.
State Exemptions for Cars
Each state offers bankruptcy filers a means to keep not only their cars but their homes and other property. This is by way of what are called exemptions. Bankruptcy exemptions represent a sum of money that keeps the property away from seizure. For example, if you own a car worth $10,000 and your state offers a vehicle exemption of $15,000, your vehicle is safe. Some states offer special vehicle exemptions and some lump cars in with other personal property. Some states also allow those who are married and are filing for a chapter 7 bankruptcy jointly to double their exemptions.
In addition, some states offer filers what is known as a wildcard exemption, which may be used in any way they wish and can be stacked on top of other exemptions to help preserve property. Naturally, the more you owe on your car (if any) the greater your chances of keeping it. The trustee would have to satisfy any liens before they sold it so this might be one time that owing money is beneficial. You should be cautioned, however, that you should ensure you have paid any loan payments and continue to do so throughout the bankruptcy period. Speak to your bankruptcy attorney about reaffirming your auto loan so that you can keep your car.
To learn more about whether you get to keep your car after declaring bankruptcy, contact law services such as Merna Law.
Share