Bankruptcy Law Firm Bountiful UT 801-676-5507 Will I lose my car if I file Bankruptcy? chapter 11
http://www.Guardian-Law.com  Utah Chapter 11 Bankruptcy Attorney Answers the Question: Will I lose my car if I file for Bankruptcy?  The fact is it depends.

 

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If your automobile is settled and also you submit a chapter 7 instance, your car has to be worth less compared to $3,000 (public auction worth) as well as you can maintain your car. If you and also a spouse data a chapter 7 instance with each other, your car must be worth much less compared to $6,000 (public auction worth) as well as you could maintain your vehicle. The $3,000 amount is the “automobile exemption” which is the Utah state law that enables you to maintain your car in bankruptcy.

 

Suppose your auto deserves even more than that? It depends. If the Chapter 7 Trustee assigned to your situation believes that she or he can get at least $2,000 or more out of your car, then they will have you take it to Erklens and also Olsen in Salt Lake City, Utah and also have your car assessed. The Trustee will typically offer you the choice to acquire the vehicle back from the bankruptcy estate if you want to.

 

— let’s state you have a vehicle worth $10,000. The truck is repaid and you file a chapter 7 situation and also you are not married. You apply your $3,000 car exception to your truck and that guarantees $7,000 is unexempt. The Trustee would have you get your vehicle evaluated. If the evaluation came back at $10,000 you would certainly have 2 options.

 

Choice 1: You could leave the truck with Erklens as well as Olsen to be cost auction. Once sold, the Trustee would certainly hand you a check for $3,000 (which is your auto exception); and also the Trustee would take the continuing to be $7,000 to pay himself or herself and your creditors.

 

Choice 2: You intend to keep the truck, so you pay the Trustee $7,000 which is the unexempt amount as well as the Trustee would certainly use the cash to pay your financial institutions and pay himself or herself for administering your bankruptcy estate.

 

If you submit a chapter 13 bankruptcy case, the Trustee does not confiscate any assets, so you don’t should stress over losing a car in a chapter 13 instance. The equity in the automobile is calculated to establish your return to unsecured lenders nonetheless, which is an other subject.

 

If your car has a funding on it as well as your equity in the car is much less than $3,000 (single) or $6,000 (wed); you could generally maintain the car if you intend to keep the car loan also. If you don’t wan to pay the loan, after that you could “give up” the car in your chapter 7 situation.

 

There are some terms you need to learn about your vehicle. Is the lending secured/unsecured, and whether or not it has equity. Right here are some terms you require to understand and also recognize: Protected = Your automobile has a financing on it and also it’s listed on the automobile title as a lienholder. Unsecured = Your vehicle is free as well as clear (without any funding on it) (or the car loan you have actually was never placed on the title, hence providing the finance unsecured. Equity = the web worth of your automobile. In bankruptcy we look at either an auction value or a reasonable market price.

 

Secured (your vehicle has a vehicle loan), but upside-down on the loan.

 

Maintain it if you wish to. If your vehicle has a lending versus it, you could note the lending in bankruptcy and then examine a box that says “declare.” This implies that you’ll maintain the vehicle loan with the same payments/interest rate/balance/etc. Or surrender it. If your automobile has a car loan versus it and you intend to give up the automobile, after that you return it to the financial institution and also wipe out the remaining balance of the car loan.

 

Secured, yet your automobile has equity above the car loan. You can still reaffirm and keep the car, but, Utah law only allows us safeguard $3,000 of equity in a vehicle for each partner, or a mixed $6,000 of equity in a single lorry if both partners get on the title. If you have more than $3,000 (or $6,000) of equity, the trustee may market your auto off to pay creditors.

 

Unsecured. You possess your auto free and also clear. If it is less compared to $3,000 in value, you will certainly not shed it. Just bear in mind that we can secure one auto for spouse up to $3,000 and also one for better half up to $3,000 or a solitary $6,000 car if both partners get on title.

 

Chapter 13. The same evaluation appllies, yet, the chapter 13 trustee will typically object if you aim to maintain more than 2 vehicles for a household or try to keep a luxury lorry.

 

Just remember that in a Chapter 13, we can stretch out the auto loan to 60 months and also alter the rate of interest to 5%. We could additionally obtain a repossessed automobile back and also capture up on missed repayments.

 

If you need a top notch bankruptcy lawyers in Utah Give us a call 801-676-5506 The office : 8833 S Redwood Road, West Jordan, Utah 84088

 

Top reviewed Chapter 13 BKLawyer in Lehi UT is here to aid you in your lonely separation. Let me know if you found this video useful.

 

This video is for you if you need to know who is the best bankruptcy attorney in Granite Utah and how to contact him.

 

#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

 

from
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from Best Utah Attorneys http://bestutahattorneys.blogspot.com/2016/09/bankruptcy-law-firm-bountiful-ut-801.html

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