Can I File Bankruptcy and Keep My House and Car?
Can I file bankruptcy and keep my house and car? The answer to this question is, unfortunately, no. In most cases, when you file for bankruptcy, both your car and house will be seized by the courts and sold off to repay your creditors. However, there are a few exceptions to this rule, so it is best to speak with an experienced bankruptcy attorney to find out if you are eligible to keep your car or house.
There are several different ways to keep a car and house if you are considering bankruptcy. First, you can refinance or restructure your payments instead of including your car in bankruptcy. Another way to avoid including your car is to redeem it or reaffirm your debt before filing for bankruptcy.
Refinance or restructure your payments instead of including the vehicle in the bankruptcy
One way to avoid including your vehicle in bankruptcy is to refinance or restructure your payments. This can save you thousands of dollars over the life of the loan. While lenders may be reluctant to negotiate with you, if you keep your communications open, you may be able to come up with a payment plan that is feasible for both parties.
Before applying for a refinance loan, it is important to keep good records. It helps if you can show that you are paying your bills on time and that you have a steady income. If you are unsure about your ability to keep track of these records, you can use desktop software or apps.
Redeeming a car during bankruptcy
If you have negative equity in your car and you want to redeem it during bankruptcy, there are a couple of options available to you. First, you can opt for a Chapter 7 bankruptcy. This type of bankruptcy allows you to pay off your auto loan at its fair market value. This is good news if you have negative equity in your car. In addition, it will wipe out all your auto loan debt, including the interest.
However, you must first make a motion to the bankruptcy court requesting to redeem your car. The court will require that you submit proof of the value of your car. Typically, they will want to see Kelley Blue Book or National Automobile Dealers Association information. You will also need to provide proof that you are going to use the car for personal use.
Reaffirming a debt before filing for bankruptcy
Reaffirming a debt before filing for bankruptcy is generally not a good idea. However, you may be required to reaffirm a debt to keep your property. Some reaffirmation agreements allow you to modify your debt. Although creditors generally want you to sign these contracts, you should avoid them if you have an unpayable debt.
In this process, the debtor promises to pay the creditors. In most cases, a reaffirmation agreement is not legally binding, but the creditor is not allowed to sue you, garnish your wages, or send you to collections. In addition, you cannot file for bankruptcy again for 8 years after reaffirming a debt. If you are considering reaffirming a debt before filing bankruptcy, be sure to consult an attorney. An attorney can help you avoid costly mistakes.
Selling a nonexempt property in Chapter 13
If you plan to sell nonexempt property in Chapter 13 bankruptcy, there are a few things to know before you start. First, determining the value of your property can be a complicated process. The more assets you have covered by exemptions, the lower the value of your nonexempt property will be. Then, you’ll have to determine a payment plan, which is based on that value.
Unlike exempt property, the nonexempt property is not protected by a bankruptcy exemption. Bankruptcy courts may take your property for liquidation if it isn’t exempt. Some types of property, such as vacation homes and memorabilia, are exempt. However, others may not be. If you’re not sure if a property is exempt, consult a bankruptcy attorney in Phoenix to get an expert opinion.