Jon Brooks is a Bay Area bankruptcy lawyer. As I recently wrote on the Bay Area Bankruptcy Lawyer Blog, perfectly honest consumer debtors sometimes make the mistake of transferring an asset to a friend or family member before filing bankruptcy. This can happen innocently enough, as for example, where a debtor gives an old car [...]
Cars and Bankruptcy
In re Penrod, 611 F.3d 1158 (9th Cir. 2010) An Opportunity for California Bankruptcy Attorneys — But Maybe Not For Long
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The 9th Circuit has ruled that to the extent that an automobile lender rolls the negative equity from a trade-in into a new acquisition loan that part of the loan is not a purchase money security interest. In re Penrod, 611 F.3d 1158 (9th Cir. 2010). The ruling in Penrod is in apparent contrast to [...]
You Can Keep Your Car During Chapter 7 Bankruptcy, But Should You Sign a Reaffirmation Agreement?
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You Can Keep a Car in Bankruptcy, But Under What Terms? In our current tenuous economic climate, more and more normal, honest, hardworking people are turning to bankruptcy for relief from overwhelming debt. In fact, most people who file for bankruptcy are perfectly responsible citizens who have lost homes, lost law suits, incurred unexpected medical [...]
Can You Strip Down a Vehicle Loan in Chapter 13?
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I heard that you can keep your vehicle in Chapter 13and pay less than your vehicle’s outstanding loan balance. Is this true? Get Caught Up on Car Payments In all situations filing a Chapter 13 bankruptcy petition will allow you to keep your vehicle. Even if you are behind on your vehicle payments by several [...]
To reaffirm, or not to reaffirm
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Should I Reaffirm My Car Loan? Since Bankruptcy Reform in 2005 Reaffirmation of debts has become a much bigger issue than before. Under the old law debtors often had the option to not reaffirm vehicle debt yet keep the car. This was referred to as “ride though” where debtors could continue the regular payment on [...]
How to Buy Your Underwater Car for its Fair Market Value (You’ll Have to File Bankruptcy First)
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722 Redemption in Chapter 7 Bankruptcy News flash: cars are depreciating assets. No matter how shiny or fast or leather trimmed, the minute you drive the sucker off the lot, it goes down in value. It should come as no surprise then that the bankruptcy courts are full of debtors saddled with car payments they [...]
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