Can I Keep My Car if I File for Chapter 7 Bankruptcy?
Also known as “liquidation bankruptcy,” Chapter 7 bankruptcy gives debtors the chance to achieve debt relief or forgiveness by liquidating certain assets. In some cases, this liquidation process can be a major deterrent, especially if you believe you will lose necessities like your home or vehicle. However, having access to reliable transportation is very important, and fortunately, many people are allowed to keep their vehicles under Chapter 7 bankruptcy.
If you or someone you know is facing financially difficult times, you may want to consider the benefits of filing for Chapter 7 bankruptcy. The Raleigh bankruptcy attorneys of the Bradford Law Offices, can help you with the bankruptcy process and also file for exemptions so you can keep your vehicle. Contact us today at 919-758-8879 to discuss your situation at no charge.
Keeping Your Vehicle
There are a number of strategies you can use to keep your vehicle when filing for Chapter 7 bankruptcy. These include the following:
- Bankruptcy exemptions – the state of North Carolina allows you to exempt up to $3,500 in equity on your car, truck, or other type of vehicle. If your car’s equity is more than $3,500, you can use the state’s wildcard exemption to cover the rest of the equity, unless the vehicle was purchased within 90 days of your bankruptcy filing.
- Redemption – with this option, you pay the finance company the present value of the vehicle, which is good for those who may owe more on the car than it is worth.
- Reaffirmation – You can sign an agreement with your car finance provider where you catch up with your finance plan and keep making payments on the vehicle without discharging the debt.
It can be difficult to determine which method is the best for helping you keep your vehicle during bankruptcy, which is why it is important to talk to a Raleigh bankruptcy lawyer as soon as possible about your options.
If you are considering bankruptcy, our dedicated Raleigh bankruptcy attorneys can help you determine which type of bankruptcy is best for you. For more information about Chapter 7 bankruptcy and how you can keep your vehicle, contact the Bradford Law Offices, today at (919) 758-8879.