Keeping Your Car in Chapter 7 Bankruptcy
Undergoing the process of Chapter 7 bankruptcy can be difficult to do when you consider the liquidation of property that is frequently used to pay off your debts. A car is often one of the most important possessions of any individual who needs reliable transportation for work or family, and losing the car to liquidation can be a difficult result of bankruptcy.
At the Russell Van Beustring P.C., our dedicated attorneys have extensive knowledge of the bankruptcy system and the experience necessary to guide you through a confusing and often complex process. If you are considering Chapter 7 bankruptcy as a solution to your debt situation, call our Houston bankruptcy attorneys today at 713-973-6650 to learn more about your options in bankruptcy court.
Protecting Your Property
Losing your vehicle in the process of bankruptcy can be extremely disruptive and may not fit with your lifestyle needs. Fortunately there are a variety of ways in which you can retain ownership of your car while still moving forward with bankruptcy proceedings. The following are a summary of your options:
- Exemption. Texas allows up to $30,000 in property exemptions in a Chapter 7 bankruptcy. If you own your car outright and the value of your car does not exceed $30,000, you will be able to keep the vehicle.
- Reaffirmation. If you still owe money on your car, you can sign an agreement which reaffirms the debt and binds you to continue making payments without discharging any of the debt.
- Redemption. If you owe more money on your car than the vehicle is worth, redemption is another option. By coming to an agreement on the value of the car with your creditor, you may pay the creditor a single lump sum and discharge the difference in the value of the vehicle and the debt you owe.
Each of these options offers a different solution for retaining your vehicle, but it is possible that none of them will serve your needs. Without taking any of the above actions your vehicle will be surrendered to the lender and your debt on the car discharged, or the vehicle will be sold to pay your debts if you own it outright.
The bankruptcy system provides debtors with a wealth of tools to manage their debt, and with the assistance of a skilled Houston Chapter 7 bankruptcy lawyer, there are viable solutions to most debt situations. For a free consultation to discuss the details of your circumstances, call the Russell Van Beustring P.C., today at 713-973-6650.