Useful Features of Bankruptcy for Car Loan Issues
Bankruptcy attorney riverside ca can help a debtor from an auto loan problem. Bear in mind that bankruptcy on a car loan only gets rid of debt by surpassing the agreement between the borrower and the creditor. Remember that bankruptcy does not remove the voluntary lien such as a car or a mortgage lien. So if a bankrupt person doesn’t pay for the car, the bank can use its lien to repossess the car.
Keeping your precious cars can be achieved even when experiencing rough financial conditions. A bankruptcy attorney can be your best advocate in the toughest situation of your auto loan. A few repayment options are offered in a bankruptcy filing. Each bankruptcy chapters provide unique advantages perfect for specific financial issues.
In chapter 7 bankruptcy if the payment is current you can go forward and continue it. You will be allowed to keep your vehicle in some conditions. You must protect all of the equity with a wildcard exemption, a motor vehicle exemption or both of them. Some creditors negotiate in a reaffirmation agreement with better terms. The borrower can also pay the car’s fair market price through a lump sum payment.
Filing Chapter 13 bankruptcy Riverside can also help a borrower in his car loan. If an individual is behind his payments but can pay off the car balance he can keep the car through a chapter 13 repayment agreement over three to five years.
In some occasions, the best thing to do is return the car to the lender. Most filers will return the car when the monthly payment is too high, they paid too much or they do not want the car at all or the responsibilities.
When filling out under a chapter 7 bankruptcy form, the “surrender the property” box must be checked. The moment that the case has ended the creditor will contact the borrower or the borrower’s bankruptcy attorney to make an arrangement for pickup.