Auto Loans in Bankruptcy
If you are in debt, then you probably value having your vehicle to get you to work, so you can continue earn an income that will help with your finances and bills.Car loans have the vehicle itself to serve as collateral. A lender can repossess your car if you do not keep up with payments. If you feel threatened that you may lose your vehicle, act immediately, and call Phoenix Bankruptcy Lawyers to get information and options.
By filing for bankruptcy protection, most creditors are prevented from any collection efforts. This includes repossession of a vehicle. By filing for bankruptcy, an automatic stay prevents creditors from contacting or harassing you as you go through the process. You should understand your rights and your options. Phoenix Bankruptcy Lawyers can explain the Arizona Bankruptcy law and process so that you can make good decisions for your financial future as you proceed with debt relief.
Many people who file bankruptcy keep their vehicles through the process. Even if you owe on your car loan and are behind on payments, your car may not be repossessed. You still must, however, make payments during bankruptcy based on the depreciation of the car. Phoenix Bankruptcy Lawyers can help you determine what kind of payments you are looking at here.
What happens if your car gets repossessed before you file bankruptcy? You might be able to get it back. Contact Phoenix Bankruptcy Lawyers immediately. The car may be included in a bankruptcy plan. Obviously it is best to take action to confront your debt before you default on your car loan. Concerning a bankruptcy case in Arizona, some assets can’t be taken by the bankruptcy trustee. There is an exemption if you have $6000 (or less) in equity in your vehicle. Yo are allowed to keep that vehicle in this case (for a married couple, the exemption doubles). The amount the car is worth minus the amount you owe on the car equals its equity.
If you are unsure what to do in the case of car loans, debt, and vehicle repossession, leave the legal representation to us. We are experienced in handling bankruptcies in Arizona and we know the law. We know the courts, the Arizona bankruptcy process, and we know the trustees. We will take care of your needs and help you with your financial issues and get you on the right track toward financial success.