Category archive for ‘Cars and Bankruptcy’ 
“What Do You Mean They Can Take My Bike?!?”
by Lori Patton on 3/06/10 | 0 Comment(s)
This past week has been “Bike Week” in Daytona Beach, which is the next county over. It’s not unusual to see groups of weekend warriors out riding around Central Florida, but more so this time of year. One question I’ve learned to ask during any initial bankruptcy consult is what I call “The Toy Question”: [...]
What Is the Rule With Cars and Bankruptcy?
by Moderator on 2/06/10 | 0 Comment(s)
Three important points to consider regarding cars and bankruptcy: 1. How much “equity” do you have in your car? As we’ve discussed on previous posts, a car or any other asset is only subject to liquidation in chapter 7 bankruptcy if there is non-exempt equity. Every state allows debtors to protect a certain amount of [...]
Can Chapter 13 Bankruptcy Lower My Car Payments?
by Moderator on 1/14/10 | 0 Comment(s)
We’ve seen a few posts lately on this Forum dedicated to trouble with car payments. What to do if you can’t afford your car and how a lender may go about trying to enforce a deficiency judgment after a repossession have been two topics our readers have been interested in. This post will focus on how [...]
Surrendering a Car You Can No Longer Afford
by Moderator on 1/12/10 | 2 Comment(s)
Bankruptcy provides the opportunity to walk away from a car with no continuing obligation to make payments. OK, so you can no longer afford your car. What to do? The first idea comes to you after a few intense discussions with your spouse or perhaps after a few beers. “I know, we’ll just give it back.” [...]
Does Filing for Bankruptcy Allow Me to Walk Away From an Underwater Home?
by John O'Connor on 1/10/10 | 2 Comment(s)
In a word, yes. Filing for bankruptcy allows the opportunity to surrender cars and real estate with no continuing obligation. North Carolina hasn’t been as hard hit as other states in the current housing crisis, however, I still meet with clients all the time who owe more than their homes are worth and can’t find [...]
Renegotiate Before Reaffirming A Debt in Bankruptcy
by Richard Stokan on 12/28/09 | 2 Comment(s)
Often, consumers who wish to keep automobiles through a bankruptcy proceeding are required to reaffirm the debt. Remember that a bankruptcy wipes out your personal obligations to pay debt. In order to keep a financed car, many states require reaffirmation. A debtor must be certain he or she can afford to make the required payments [...]
Can You Get a Repossessed Car Back by Filing for Chapter 13 Bankruptcy?
by Drew Broaddus on 12/06/09 | 2 Comment(s)
We were recently contacted by an individual whose automobile – which he owned free and clear – was repossessed by a creditor who obtained a judgment on an unrelated debt, and apparently perfected a lien on the vehicle. At first blush, it may appear that filing for bankruptcy at this stage would not help this [...]
Drafting the Chapter 13 Plan
by Drew Broaddus on 10/30/09 | 5 Comment(s)
A Chapter 13 Bankruptcy is also called a wage earner’s Plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the Debtor ‘s current monthly income is [...]
Exemptions: What can I keep if I file bankruptcy?
by Drew Broaddus on 10/23/09 | 5 Comment(s)
The bankruptcy code allows each individual who files bankruptcy to keep basic assets deemed necessary for the debtor’s ‘fresh start’ after bankruptcy. That property is the debtor’s ‘exempt property.’ The debtor claims property as exempt in the schedules that are filed to initiate the case. If no objections are filed to the exemptions, they become [...]
In-Kind Exemptions and the ‘Super’ Schedule C
by John O'Connor on 10/15/09 | 1 Comment(s)
Under normal circumstances, a debtor claiming and exemption is limited by the statutory dollar amount that their jurisdiction imposes on the type of asset they are seeking to protect. For instance, North Carolina law allows a married couple filing a joint case to protect up to $37,000 of equity in their home. A couple who [...]
