If you are filing for
bankruptcy, it is likely that you have been facing debts and financial difficulties
in various areas of your life. This can include your property, and your
vehicle. Because many of us depend on our cars to get us to and from work,
and to handle the daily needs of life, it can be difficult to consider
whether giving yours up is a wise decision. Because bankruptcy is always
unique to the financial circumstances at hand, whether you should keep
yours will depend on the situation.
At Allmand Law Firm, PLLC, our Dallas bankruptcy lawyers work personally
with our clients to understand their current financial situations, including
their current debts, and their most appropriate options for securing the
financial fresh start they need. If you have a vehicle, we can help you
determine what steps you may need to take, and you can also educate yourself
about whether keeping your vehicle is the right decision during bankruptcy.
For example, consider the following:
- Is the car worth more than the car loan? We’ve heard of upside down mortgages; but many people enter bankruptcy
with car loans that are upside down. Paying for a vehicle valued at $10,000
with a $15,000 loan is just not smart when you’re trying to get a
fresh start in bankruptcy. If your car loan is inflated and exceeds the
value of your vehicle you may want to consider surrendering the car in
bankruptcy and buying a cheaper alternative.
- Does the lender insist that you sign a reaffirmation agreement in bankruptcy
if you want to keep you car? Signing a reaffirmation agreement will make you legally liable for the
car loan even after your bankruptcy discharges other debts. This is risky
because if you are unable to pay the reaffirmed loan after bankruptcy,
you will be liable for any balance after the car is repossessed and auctioned off.
- Do you have more than two years of car payments left on your car loan? The longer the repayment period on your car loan the higher the risk that
you may default after bankruptcy. Reaffirming a car loan after bankruptcy
that has a 2 year plus repayment period could put you at financial risk.
Whether you wish to protect your vehicle or not, our attorneys at Allmand
Law Firm, PLLC are available to discuss your rights and options as you
prepare for and navigate the bankruptcy process. If you have questions
regarding your property and assets during bankruptcy, we encourage you
to speak personally with a member of our legal team to obtain information
relevant to you and your case. We offer FREE financial empowerment sessions
to residents throughout the Dallas – Fort Worth area.
Contact us today to request your FREE consultation.