Can I Keep My Car In Chapter 7 Bankruptcy?

more+
less-

Can I Keep My Car In Chapter 7 Bankruptcy?

Chapter 7 bankruptcy chapter 7 bankruptcy exemptions keeping car Phoenix bankruptcy lawyer

One of the most common bankruptcy questions I receive is whether you can keep your car if you file for Chapter 7 bankruptcy. If you are not making payments on your car, you will be able to keep it if it falls under the Arizona car exemption statute. However, if you owe money on your car, you are going to have to decide whether you want to surrender it or keep making payments on it.

If you decide to surrender the vehicle, you will be relieved of any liability for the debt. If however you intend on keeping the car, you have a couple options. First, you can redeem the car by paying the remaining balance of the loan in one lump sum. The other more common way to keep your vehicle is to reaffirm the debt by entering into a new contract (reaffirmation agreement), which allows you to keep your car under similar terms as your original car's promissory note. If you find yourself requiring a reaffirmation agreement in your Chapter 7 bankruptcy, I would recommend retaining an attorney to discuss whether keeping the car is a good option for you and to review the reaffirmation agreement.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Christopher Ariano, Ariano and Reppucci PLLC | Attorney Advertising

Written by:

more+
less-

Ariano and Reppucci PLLC on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×