Can I Keep My Car?
Many individuals turn to bankruptcy in order to escape insurmountable levels of debt. When individuals file for Chapter 7 bankruptcy, it is possible that they may be required to sell some of their assets in order to pay back creditors.
Many people require some basic, although expensive, properties. In particular, many Americans rely on their cars to get to and from work, making the potential loss of this property truly devastating. Fortunately, most individuals and families who file for Chapter 7 bankruptcy are able to avoid losing their car.
For more information regarding your options during bankruptcy, contact the Birmingham bankruptcy attorneys of GREENWAY BANKRUPTCY LAW, LLC, at (205) 324-4000 today.
Grounds for Retaining a Car
There are a few requirements that must be fulfilled before a person can keep his or her car or truck. In particular, the worth of the vehicle and the amount owed by the debtor can play an important role in determining whether or not a vehicle can be kept.
Additionally, loans on a vehicle may need to be reaffirmed even if a bankruptcy trustee does not take that vehicle. The following are some ways a vehicle can be saved in bankruptcy:
- The amount owed is greater than the worth of the vehicle
- A special agreement may be created if there is equity on the car
- The vehicle is instrumental to a person’s job / livelihood
- The loan on the vehicle is reaffirmed with the creditor
There may be other options available according to various bankruptcy exemptions, as well. Not only can state-specific exemption laws help debtors keep their property, but trustees may be willing to work out additional exemptions under certain circumstances.
To determine how the law can help you keep important pieces of property, contact the Birmingham bankruptcy attorneys of GREENWAY BANKRUPTCY LAW, LLC, today by calling (205) 324-4000.