Bankruptcy Law Firm Grantsville UT 801-676-5506 Do I lose my truck in Bankruptcy? chapter 9

Bankruptcy Law Firm Grantsville UT 801-676-5506 Do I lose my truck in Bankruptcy? chapter 9

http://www.AscentLawFirm.com  Utah Bankruptcy Attorney Answers the Question: Will I lose my truck if I file for Bankruptcy?  The fact is it depends.

 

 

If your vehicle is paid off as well as you file a chapter 7 case, your auto must deserve less compared to $3,000 (auction worth) as well as you could keep your car. If you as well as a partner file a chapter 7 instance together, your auto must be worth much less than $6,000 (auction worth) and you can maintain your automobile. The $3,000 amount is the “auto exception” which is the Utah state law that enables you to maintain your car in bankruptcy.

 

Suppose your car deserves even more compared to that? It depends. If the Chapter 7 Trustee assigned to your case thinks that she or he could get at least $2,000 or even more from your car, after that they will certainly have you take it to Erklens and also Olsen in Salt Lake City, Utah as well as have your car assessed. The Trustee will normally give you the option to purchase the automobile back from the bankruptcy estate if you want to.

 

For example– let’s say you have a truck worth $10,000. The vehicle is paid off as well as you file a chapter 7 situation as well as you are not wed. You use your $3,000 car exemption to your truck and that means $7,000 is unexempt. The Trustee would have you obtain your truck evaluated. If the appraisal came back at $10,000 you would have 2 alternatives.

 

Choice 1: You could leave the truck with Erklens as well as Olsen to be sold at auction. As soon as marketed, the Trustee would hand you a look for $3,000 (which is your car exemption); and also the Trustee would take the staying $7,000 to pay himself or herself and your financial institutions.

 

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

 

If you file a chapter 13 bankruptcy instance, the Trustee does not confiscate any kind of assets, so you don’t need to stress over losing a car in a chapter 13 situation. The equity in the car is calculated to establish your go back to unsecured lenders however, which is a different topic.

 

If your vehicle has a financing on it and your equity in the car is much less than $3,000 (solitary) or $6,000 (wed); you could usually maintain the car if you wish to maintain the car loan too. If you do not wan to pay the lending, then you can “give up” the car in your chapter 7 instance.

 

There are some terms you have to learn about your vehicle. For instance is the car loan secured/unsecured, and also whether it has equity. So right here are some terms you need to recognize and also understand: Safe = Your automobile has a loan on it and also it’s provided on the vehicle title as a lienholder. Unsecured = Your auto is totally free and also clear (without any lending on it) (or the lending you have actually was never placed on the title, hence rendering the finance unsecured. Equity = the net worth of your vehicle. In bankruptcy we look at either a public auction value or a fair market value.

 

Protected (your auto has a vehicle loan), however inverted on the loan.

 

Maintain it if you want to. If your vehicle has a funding against it, you can list the loan in bankruptcy then check a box that states “reaffirm.” This suggests that you’ll keep the vehicle loan with the very same payments/interest rate/balance/etc. Or surrender it. If your car has a financing versus it as well as you wish to surrender the vehicle, then you return it to the financial institution and also eliminate the remaining balance of the lending.

 

Secured, but your vehicle has equity over the funding. You could still declare as well as maintain the vehicle, yet, Utah law only allows us secure $3,000 of equity in a lorry for each spouse, or a combined $6,000 of equity in a solitary vehicle if both partners are on the title. If you have greater than $3,000 (or $6,000) of equity, the trustee may sell your vehicle off to pay creditors.

 

Unsecured. You own your vehicle totally free as well as clear. If it is much less than $3,000 in worth, you will not lose it. Just bear in mind that we could protect one vehicle for spouse up to $3,000 and one for wife as much as $3,000 or a single $6,000 lorry if both partners get on title.

 

Chapter 13. The exact same analysis appllies, but, the chapter 13 trustee will typically object if you attempt to keep greater than 2 cars for a household or aim to maintain a deluxe car.

 

Just keep in mind that in a Chapter 13, we could stretch out the auto loan to 60 months and also change the rates of interest to 5%. We can likewise give a repossessed car back and also catch up on missed payments.

 

If you need the best bankruptcy attorneys in Utah Call if you’re ready 801-676-5506 The address : 8833 South Redwood Rd, West Jordon, UT 84088

 

The Absolute Best chptr 11 bankruptcyLawyer in North Salt Lake Utah is here to assist you in your difficult separation. I hope this answered the question you had.

 

This video is for you if you need to know who is the best bankruptcy law firm in Kaysville Utah 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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