Can I Save My Car During Bankruptcy?

Posted on July 26, 2021

saving car during bankruptcyWhen it comes to filing bankruptcy, it is not a simple process for anyone. For those going through bankruptcy, it is always helpful to look for a local lawyer such as bankruptcy attorney Greensboro, bankruptcy attorney High Point or looking for a Greensboro NC bankruptcy attorney. The right attorney can make all the difference.

Cars and Repossessions

When filing for bankruptcy it is the goal of the court and your lawyer to reduce your expenditures as much as possible so that the bankruptcy can be justified. A good example would be if you were filing for bankruptcy but you were spending $5,000 on shopping per week. When it comes to bankruptcy this also applies to your car. If you own a car that is very expensive but you are still filing, you may be required to sell your car to help pay off some of the debt. When you fall behind on payments, repossessions are possible and the bank can come back and take the car.

How to Protect Your Car During Bankruptcy

If you want to keep your car but still file bankruptcy, you should take the time to find out a bit about the laws in the area where you live. Most states have an amount that the value of your car cannot exceed if you want to keep it. If you have a car that is worth $1 million dollars for example and you own it outright, you are likely going to be required by law to sell your car to help cover your debt.

How a Lawyer Can help

If you want to keep your car and file for bankruptcy, it is helpful to take the time to find a lawyer that can help. Your lawyer can help you determine how much you can keep, what you should do, and can help smooth out the entire process. The Law Office of Mercedes O. Chut P.A. can help.