If you’re struggling financially and worried about losing your car, there are options available that can help you keep your vehicle. In this blog post, two top bankruptcy attorneys will discuss the different types of bankruptcy, how they impact your car ownership, and what you can do to protect your vehicle during the bankruptcy process.
Chapter 7 vs. Chapter 13 Bankruptcy
Two main types of bankruptcy that individuals may file are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, your non-exempt assets are sold to pay off your creditors, and any remaining debt is forgiven. If you want to keep your car in a Chapter 7 bankruptcy, you may be able to “redeem” the car by paying its current value to the creditor in a lump sum. This could be beneficial if your car’s value is less than the amount you owe on your auto loan. Alternatively, you can negotiate with your lender to reaffirm your auto loan, which lets you maintain your regular payments and keep your car.
In a Chapter 13 bankruptcy, you make a repayment plan to pay off your debts for 3 to 5 years. Because this type of bankruptcy allows you to keep your essential assets, including your car, you can still make regular payments on your car loan and hold onto your vehicle.
Steps to Keep Your Car During Bankruptcy
To keep your car during the bankruptcy process, you may need to take specific steps such as:
- Negotiate with your lender: You may be able to renegotiate loan terms, interest rates, or repayment schedules to make your car loan more manageable.
- Redeem your car: As mentioned earlier, redeeming your car may be an option if you’re eligible.
- Reaffirm your loan: You can reaffirm your car loan with your lender, indicating that you’ll continue to pay it after the bankruptcy process.
- Declare bankruptcy without surrendering: If your car is leased, you can declare bankruptcy without surrendering the vehicle, as long as you continue to make payments on the lease.
Conclusion
Filing for bankruptcy can be a tough decision, but with the right legal advice and strategy, you can keep your car and get back on track financially. Whether you choose a Chapter 7 or Chapter 13 bankruptcy, it’s important to work with an experienced attorney who can guide you through the process and make sure your rights are protected. Remember that there are options available, even if you’re struggling with debt and fear losing your car. If you need help from a lawyer to declare bankruptcy, contact Lewis & Jurnovoy today.
Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts.
Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401
(850) 913-9110
https://www.LewisandJurnovoy.com
Lewis & Jurnovoy, P.A. - Panama City 