http://www.AscentLawFirm.com Utah Chapter 11 Bankruptcy Attorney Answers the Question: Will I lose my auto if I file for Bankruptcy? The truth is it depends.
If your vehicle is settled as well as you file a chapter 7 case, your car must be worth less than $3,000 (public auction value) and you can maintain your vehicle. If you as well as a partner data a chapter 7 case together, your vehicle must be worth less than $6,000 (auction value) and also you can keep your vehicle. The $3,000 quantity is the "auto exception" which is the Utah state law that permits you to maintain your auto in bankruptcy.
What happens if your vehicle is worth even more compared to that? It depends. If the Chapter 7 Trustee assigned to your situation thinks that she or he can get at least $2,000 or more out of your vehicle, then they will certainly have you take it to Erklens as well as Olsen in Salt Lake City, Utah and also have your auto appraised. The Trustee will normally give you the choice to purchase the auto back from the bankruptcy estate if you wish to.
As an example-- why don't we's state you have a truck worth $10,000. The truck is repaid and also you submit a chapter 7 case and you are not wed. You apply your $3,000 automobile exemption to your vehicle and that implies $7,000 is unexempt. The Trustee would have you give your truck appraised. If the evaluation came back at $10,000 you would have 2 alternatives.
Choice 1: You could leave the truck with Erklens and Olsen to be sold at public auction. As soon as marketed, the Trustee would hand you a check for $3,000 (which is your car exception); and also the Trustee would certainly take the staying $7,000 to pay himself or herself and your creditors.
Choice 2: You intend to maintain the vehicle, so you pay the Trustee $7,000 which is the unexempt amount and also the Trustee would certainly make use of the cash to pay your creditors and also 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 should fret about shedding an automobile in a chapter 13 instance. The equity in the car is determined to identify your return to unsecured lenders nonetheless, which is a various subject.
If your vehicle has a lending on it as well as your equity in the car is much less than $3,000 (single) or $6,000 (married); you could generally keep the vehicle if you wish to keep the lending too. If you don't wan to pay the financing, then you can "surrender" the automobile in your chapter 7 instance.
There are some terms you have to learn about your vehicle. For instance is the car loan secured/unsecured, as well as whether or not it has equity. So below are some terms you should recognize and recognize: Protected = Your car has a loan on it and also it's noted on the automobile title as a lienholder. Unsecured = Your auto is totally free and clear (without any funding on it) (or the funding you have was never ever placed on the title, hence providing the car loan unsecured. Equity = the internet value of your car. In bankruptcy we consider either an auction worth or a fair market value.
Secured (your vehicle has an auto loan), but upside down on the funding.
Maintain it if you intend to. If your car has a lending against it, you can provide the loan in bankruptcy and after that check a box that claims "declare." This implies that you'll keep the vehicle loan with the same payments/interest rate/balance/etc. Or surrender it. If your vehicle has a lending against it as well as you intend to give up the auto, then you return it to the bank and erase the continuing to be balance of the finance.
Protected, yet your auto has equity over the loan. You could still declare and also keep the car, but, Utah law just allows us safeguard $3,000 of equity in a lorry for each spouse, or a mixed $6,000 of equity in a single automobile if both spouses are on the title. If you have greater than $3,000 (or $6,000) of equity, the trustee could offer your automobile off to pay creditors.
Unsecured. You own your automobile totally free and clear. If it is less than $3,000 in worth, you will certainly not lose it. Simply keep in mind that we can shield one automobile for hubby approximately $3,000 and one for other half up to $3,000 or a single $6,000 vehicle if both partners get on title.
Chapter 13. The same evaluation appllies, but, the chapter 13 trustee will normally object if you aim to maintain more than 2 automobiles for a family members or aim to keep a deluxe vehicle.
Simply bear in mind that in a Chapter 13, we could extend the vehicle loan to 60 months and change the interest rate to 5%. We could likewise give a repossessed car back and catch up on missed out on payments.
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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
8833 S. Redwood Road, Suite C
West Jordan, Utah 84088 United States
Telephone: (801) 876-5875
Jeremy Eveland
from
http://annaproctor98.blogspot.com/2016/09/bankruptcy-attorneys-granger-ut-801-676.html
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