Filing for bankruptcy will affect every aspect of your life. You may have a lot of questions about your assets. That’s why it makes sense to hire a bankruptcy law lawyer in Orange County before you even consider this path.
An experienced bankruptcy lawyer will guide you every step of this difficult process. If you have questions, your attorney will be there to answer them truthfully and logically.
One of the questions of many of our clients at Karine Karadjian is the fate of their vehicles. Would they lose their car, too?
When you work with our bankruptcy law lawyer in Orange County, you will know how you can keep your car.
Your car is an expensive investment. It is also vital especially if you depend on it heavily to go from one place to another for your business or work.
When filing a bankruptcy, some of your assets will be exempted from the trustee’s reach. And one of those assets is your car. But it still depends on the overall value of your car.
If it is worth $10,000 but it has an $8,000 loan attached to it, then your car would be exempted from the law. However, if that car has no loan, then your trustee could file non-exempt equity.
Then, if you have not paid your car loan for a few months, you will likely to lose it, unless your lender gives you a new payment plan. It can get complicated. That’s why you need to work with a bankruptcy lawyer who knows the ins and outs of filing a bankruptcy.
The bankruptcy law is quite different for leased vehicles. Your lawyer will file a petition on your behalf.
The lawyer works with you in filling out a statement of intention in 30 days. The statement allows creditors to know what your plans are with the leased car.
The filing of the statement must be done ASAP to avoid lifting the automatic stay. The statement will protect your automobile from repossession during the bankruptcy period.
Assuming the lease will make you continue paying the same way you did before bankruptcy. The debt and its related charges will not be discharged. Failure to make payments will cause your car to be repossessed.
Another option you can take is to end the car lease. But it will signal the creditor that you do not have plans on paying it.
If you elect this option, your creditor will file a motion to repossess the car. However, eliminating the lease will also free you from paying the car and its associated liability for extra mileage damages and fees.
If you are not sure what options to take about your vehicle, make sure to contact our bankruptcy lawyers. We can advise on the best ways to deal with this conundrum.
Our professional law corporation has been helping thousands of businesses and individuals in avoiding bankruptcy or filing bankruptcy. To find out more about how we can help you keep your car, call our bankruptcy law lawyer in Orange County at (949) 565-4707 or (818) 960-6460.