Bankruptcy Attorney Sandy UT 801-676-5507 Do I lose my truck in Bankruptcy? chapter 9

Bankruptcy Attorney Sandy UT 801-676-5507 Do I lose my truck in Bankruptcy? chapter 9

http://www.AscentLawFirm.com  Utah Chapter 11 Bankruptcy Attorney Answers the Question: Will I lose my automobile if I declare Bankruptcy?  The truth is it depends.

 

 

If your car is settled as well as you file a chapter 7 instance, your auto needs to deserve less compared to $3,000 (auction worth) and also you could maintain your automobile. If you and also a spouse file a chapter 7 situation with each other, your vehicle needs to be worth less compared to $6,000 (public auction value) and you can keep your vehicle. The $3,000 quantity is the “car exception” which is the Utah state law that enables you to maintain your vehicle in bankruptcy.

 

What if your car deserves more compared to that? It depends. If the Chapter 7 Trustee appointed to your instance thinks that he or she could access the very least $2,000 or more from your auto, then they will certainly have you take it to Erklens and Olsen in Salt Lake City, Utah and also have your automobile appraised. The Trustee will generally give you the alternative to buy the auto back from the bankruptcy estate if you intend to.

 

— allow’s claim you have a truck worth $10,000. The vehicle is repaid and also you file a chapter 7 case as well as you are not married. You use your $3,000 auto exception to your vehicle and that implies $7,000 is unexempt. The Trustee would certainly have you give your vehicle evaluated. If the assessment came back at $10,000 you would certainly have 2 choices.

 

Option 1: You can leave the truck with Erklens and Olsen to be sold at public auction. When offered, the Trustee would certainly hand you a look for $3,000 (which is your vehicle exemption); and also the Trustee would take the remaining $7,000 to pay himself or herself and also your financial institutions.

 

Option 2: You intend to maintain the vehicle, so you pay the Trustee $7,000 which is the unexempt amount and also the Trustee would use the cash to pay your financial institutions and pay himself or herself for administering your bankruptcy estate.

 

If you submit a chapter 13 bankruptcy situation, the Trustee does not take any type of properties, so you do not should fret about losing a vehicle in a chapter 13 case. The equity in the vehicle is computed to determine your return to unsecured financial institutions nevertheless, which is an other subject.

 

If your automobile has a funding on it and your equity in the automobile is less compared to $3,000 (solitary) or $6,000 (married); you could normally maintain the auto if you wish to keep the funding too. If you don’t wan to pay the financing, after that you could “give up” the vehicle in your chapter 7 situation.

 

There are some terms you need to know about your auto. Is the finance secured/unsecured, and also whether or not it has equity. So here are some terms you have to recognize and understand: Safe = Your automobile has a car loan on it and also it’s provided on the vehicle title as a lienholder. Unsecured = Your car is complimentary and clear (without any funding on it) (or the car loan you have was never placed on the title, thus rendering the car loan unsecured. Equity = the net worth of your vehicle. In bankruptcy we look at either a public auction value or a reasonable market price.

 

Secured (your car has a car loan), however inverted on the car loan.

 

Maintain it if you wish to. If your vehicle has a lending versus it, you could detail the funding in bankruptcy and then inspect a box that states “reaffirm.” This guarantees that you’ll keep the vehicle loan with the same payments/interest rate/balance/etc. Or surrender it. If your vehicle has a finance against it and also you intend to give up the automobile, then you return it to the financial institution and also erase the continuing to be balance of the lending.

 

Protected, but your automobile has equity over the funding. You can still declare as well as maintain the automobile, yet, Utah law only lets us shield $3,000 of equity in an automobile for every spouse, or a combined $6,000 of equity in a single vehicle if both partners are on the title. If you have greater than $3,000 (or $6,000) of equity, the trustee might offer your automobile off to pay lenders.

 

Unsecured. You own your vehicle complimentary and clear. If it is less compared to $3,000 in value, you will certainly not lose it. Just keep in mind that we could protect one car for partner as much as $3,000 and one for other half as much as $3,000 or a solitary $6,000 automobile if both spouses get on title.

 

Chapter 13. The very same analysis appllies, yet, the chapter 13 trustee will usually object if you aim to keep greater than 2 vehicles for a household or try to maintain a deluxe vehicle.

 

Simply bear in mind that in a Chapter 13, we can stretch out the auto loan to 60 months as well as change the interest rate to 5%. We could also give a repossessed automobile back and also catch up on missed settlements.

 

If you need fighting bankruptcy attorneys in Utah Call if you’re ready 801-676-7308 The location : 8833 So. Redwood Road, West Jordan, UT 84088

 

Top reviewed Chapter 13 BKAttorney in Midvale Utah is here to aid you in your difficult case. Let me know if you found this video useful.

 

This video is for you if you need to know who is the best bankruptcy law firm in Solitude UT and how to contact them.

 

#BestUTLawyer  This applies to you if you live in South Jordan, Bingham Canyon, Pepperwood, Cottonwood Heights, Salt Lake City, Sandy, Taylorsville, Midvale, Riverton, Draper, Copperton, West Jordan, Magna, Alpine, Lehi, Tooele, Murray City, North Salt Lake, Bountiful, Woods Cross, Lindon, Centerville, Orem, Park City, Farmington, Provo, West Valley City, Sandy City, West Jordan, Kaysville, Layton, Syracuse, Clearfield, Hill AFB, or Grantsville.

 

Will I Lose My Car If I File Bankruptcy

Utah Bankruptcy Attorney

Bankruptcy Lawyer in Utah

 

Guardian Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah 84088 United States

Telephone: (801) 876-5875

Jeremy Eveland

 

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