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How to Keep Multiple Cars in Bankruptcy
Understanding Bankruptcy: Keeping Multiple Cars
Bankruptcy is often viewed as a last resort for those under the crushing weight of debt. It’s a legal process that provides individuals an opportunity to seek relief from their financial obligations, but it’s not without its challenges. Among these challenges is the fear of losing personal assets, including cars. This fear intensifies for individuals or families with multiple cars. However, it’s possible to keep multiple cars during bankruptcy, depending on the circumstances and the specific bankruptcy chapter filed.
Chapter 7 Bankruptcy and Your Cars
Chapter 7 bankruptcy is a liquidation process. The bankruptcy trustee sells non-exempt assets to pay your creditors. However, each state has exemptions that allow you to protect certain assets, including a car. If you have multiple cars, the possibility of keeping them all depends on your state’s exemption laws and whether there’s equity in the cars. If there’s no equity, or the equity is covered by your state’s vehicle exemption, you can likely keep the car.
Chapter 13 Bankruptcy and Your Cars
Chapter 13 bankruptcy is a reorganization process, where you pay back a portion of your debts over a 3-5 year period. In this case, you’re more likely to keep all your cars, as long as you can afford the payments. The value of the cars will be factored into your repayment plan, and if you can demonstrate that each car is necessary, such as for work or family needs, you may be allowed to keep them.
The Role of a Bankruptcy Attorney
Understanding how to navigate through bankruptcy while keeping your cars can be tricky. It’s advisable to consult with a seasoned Fresno bankruptcy attorney to guide you through the process. At Liviakis Law Firm, our attorneys can help assess your situation, explain your options, and work with you to establish a plan that best meets your needs. We’re here to help you regain control over your financial future. Contact us today at 916 459 2364 for a free consultation.