How to Keep Your Car in Bankruptcy | Reaffirmation
Utah Bankruptcy Lawyer – Salt Lake City, Provo
In today’s world, especially here in Utah, most of us need a car to get to work, school, and generally around. It is therefore extremely important for many people considering bankruptcy that they don’t lose their vehicles in the process. Thankfully, most individuals who file for bankruptcy are able to keep their vehicles and a Utah bankruptcy lawyer at our law firm can assist you in that endeavor.
Options for Keep Keeping Your Vehicles
Most people want to at least keep 1 vehicle even if they owe money on it and are filing for a Chapter 7 Bankruptcy in Utah and are discharging all of their other debts. If your are like the literally thousands of people in Utah who file Chapter 7 bankruptcy, you have about 3 different options when it comes to your vehicles: (1) You may be able to redeem your vehicle by simply paying the creditor a negotiated settlement, thereby taking sole ownership of the care not subject to any loan. This is usually not a viable option for debtors since they don’t typically have the cash on hand necessary to do this. (2) You may be able to reaffirm the debt. This is often what most debtors choose to do who are looking to keep their vehicle. When you reaffirm, you agree to continue the contract on the vehicle and pay the monthly sum due. This means that the car loan will not be subject to the bankruptcy and you will continue to be liable on the loan. (3) Finally, if you can’t pay it off or you do not wish to reaffirm the loan, you can surrender the vehicle and no longer be liable on the debt, but of course, you lose the car.
Salcido Law Firm – 801.413.1753
At Salcido Law Firm, we have helped numerous individuals either redeem, reaffirm, or surrender their vehicles in bankruptcy. If you are looking to keep your car but need to file for bankruptcy, do not delay. Speak with a Salt Lake City bankruptcy attorney in our office as soon as possible. Call 802.810.8825 or send us an email.