It is not unusual for people who are filing bankruptcy to ask our attorneys if they can keep their car, van or truck. If you file bankruptcy and own a car or truck, you usually are allowed to keep it during and after the case, especially if it is used for getting to and from work. Even if you are behind on your car payments, you may be able to use bankruptcy laws to keep your vehicle in your possession. The automatic stay in bankruptcy is designed to stop repossessions. In most cases, this goes into effect right after you officially file for bankruptcy, and prevents your vehicle from being repossessed.
Both Chapter 7 and Chapter 13 bankruptcy cases address cars, car loans and vehicles you own outright. Often a car loan can be restructured by reducing principal to the market value of the collateral, and lowering payments by extending the repayment period to 60 months.
Chapter 7 bankruptcy exemptions may protect your car or truck from a forced sale, and Chapter 13 may allow you to repay your car or truck loan at a more affordable rate so that you don’t lose your vehicle to collectors.
If you are considering filing a Chapter 7 or 13 bankruptcy, you must comply with a vast number of federal laws and regulations. An error at any step of the process can result in the court refusing to discharge your liabilities. The attorney you hire does matter. If you are considering bankruptcy, we are here to help you. Call now for a free attorney consultation to discuss your case. Call 256-534-3435 or 256-350-7200. We can help.
Huntsville Office Location:
303 Williams Avenue SW
Huntsville, AL 35801
Decatur Office Location:
401 Lee Street, Suite 607A
Decatur, AL 35601
Our bankruptcy attorneys serve Cullman, Jackson, Limestone, Lawrence, Madison and Morgan Counties only.