Keeping Your Car In A Bankruptcy
When you live in Las Vegas and having immense financial difficulty, filing for bankruptcy is oftentimes inevitable. Many people in Las Vegas, especially those who have children or those whose work is located outside the vicinity where the main transportation is, usually own a car despite having buses available to commuters. When you have decided to file for bankruptcy, the car becomes a concern. Of course, you would want keeping your car in a bankruptcy. These are side issues that we can help you work through when needing a Las Vegas bankruptcy attorney.
Fortunately, you can make use of the Chapter 7 of Bankruptcy. In this Chapter, it says that if the equity of your car falls within the exemption guidelines specified, you will be able to keep your car and at the same time, be freed of your obligation to pay your debt. Then, you can start anew.
What Happens To My Car In A Bankruptcy?
But it is not as easy as that. Having a car loan and then filing for bankruptcy taking advantage of Chapter 7 could put you in a complex situation wherein you might be forced by your lender into signing an affirmation agreement to be able to have the car after its discharge, creating more complexities. To serve your best interest, you should consult your Las Vegas bankruptcy lawyer to properly guide you and help you make a sound decision if you wonder what happens to your car in a bankruptcy?
However, if the value of equity exceeds the amount specified in Chapter 7, Chapter 13 may be applicable for you. In this chapter, you will be given a chance to settle a portion of your debt within a period of 3-5 years and will let you keep your car as well. This is a better option if you want to keep your car and everything else that you have while being freed of the obligation to pay for your debt.
But you need to take note of this. If you are planning to file for bankruptcy, do not sell or transfer your car to somebody else. If you do this, there will be a need to relay this matter to the bankruptcy trustee. If the transfer took place within a specific time period, it could be a ground for suspicion of something fishy and you may end up facing more problems than you already have. You may discuss this possibility with your Las Vegas bankruptcy attorney, but I believe that is not worth risking.