http://www.AscentLawFirm.com Utah Chapter 11 Bankruptcy Lawyer Answers the Question: Will I lose my vehicle if I declare Bankruptcy? The fact is it depends.
If your automobile is settled as well as you file a chapter 7 instance, your automobile should be worth less compared to $3,000 (public auction worth) and also you can keep your automobile. If you as well as a partner file a chapter 7 instance with each other, your car has to deserve less compared to $6,000 (auction value) and you could keep your auto. The $3,000 amount is the “automobile exemption” which is the Utah state law that permits you to keep your vehicle in bankruptcy.
What if your automobile is worth even more than that? It depends. If the Chapter 7 Trustee appointed to your case believes that she or he could get at the very least $2,000 or even more from your auto, then they will have you take it to Erklens and Olsen in Salt Lake City, Utah as well as have your auto assessed. The Trustee will normally provide you the choice to buy the automobile back from the bankruptcy estate if you want to.
— why don’t we’s say you have a truck worth $10,000. The truck is paid off and also you submit a chapter 7 instance as well as you are not wed. You use your $3,000 vehicle exception to your vehicle which implies $7,000 is unexempt. The Trustee would certainly have you get your truck assessed. If the assessment came back at $10,000 you would certainly have 2 alternatives.
Choice 1: You could leave the truck with Erklens and Olsen to be cost public auction. Once offered, the Trustee would hand you a check for $3,000 (which is your auto exemption); as well as the Trustee would certainly take the remaining $7,000 to pay himself or herself and your lenders.
Option 2: You intend to maintain the truck, so you pay the Trustee $7,000 which is the unexempt amount as well as the Trustee would use the cash to pay your lenders as well as pay himself or herself for providing your bankruptcy estate.
If you submit a chapter 13 bankruptcy situation, the Trustee does not seize any possessions, so you don’t should stress over losing a car in a chapter 13 situation. The equity in the automobile is calculated to establish your return to unsecured financial institutions however, which is a different topic.
If your vehicle has a car loan on it and your equity in the vehicle is less compared to $3,000 (solitary) or $6,000 (wed); you could generally keep the automobile if you want to maintain the car loan too. If you don’t wan to pay the loan, then you could “surrender” the vehicle in your chapter 7 case.
There are some terms you need to learn about your auto. For example is the financing secured/unsecured, and whether or not it has equity. Below are some terms you require to know and also recognize: Secured = Your vehicle has a lending on it as well as it’s noted on the vehicle title as a lienholder. Unsecured = Your vehicle is complimentary as well as clear (without any car loan on it) (or the financing you have was never placed on the title, thus providing the car loan unsecured. Equity = the internet value of your auto. In bankruptcy we check out either an auction worth or a fair market price.
Protected (your automobile has an auto loan), but upside-down on the lending.
Keep it if you want to. If your automobile has a finance against it, you can note the funding in bankruptcy then check a box that claims “declare.” This indicates that you’ll maintain the auto loan with the exact same payments/interest rate/balance/etc. Or surrender it. If your vehicle has a funding against it as well as you want to give up the car, after that you return it to the financial institution as well as wipe out the staying equilibrium of the finance.
Protected, yet your auto has equity above the finance. You can still declare and maintain the vehicle, but, Utah law just lets us shield $3,000 of equity in a lorry for each and every spouse, or a mixed $6,000 of equity in a solitary car if both spouses get on the title. If you have more than $3,000 (or $6,000) of equity, the trustee may offer your auto off to pay lenders.
Unsecured. You have your car free and clear. If it is much less than $3,000 in value, you will not shed it. Just bear in mind that we could protect one car for hubby approximately $3,000 and one for wife approximately $3,000 or a single $6,000 lorry if both partners get on title.
Chapter 13. The very same evaluation appllies, however, the chapter 13 trustee will generally object if you try to maintain greater than 2 cars for a family or try to maintain a high-end vehicle.
Simply bear in mind that in a Chapter 13, we can extend the car loan to 60 months and alter the interest rate to 5%. We can additionally give a repossessed car back and also capture up on missed payments.
If you need fighting bankruptcy lawyer in Utah Call Now 801-676-5506 The address : 8833 So. Redwood Road, West Jordan, UT 84088
Best Reviewed Chapter 13 BKAttorney in SLC Utah is here to aid you in your hard separation. I hope this answered the question you had.
This video is for you if you need to know who is the best bankruptcy attorney in Highland Park UT and how to contact him.
#UTBK 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
8833 S. Redwood Road, Suite C
West Jordan, Utah 84088 United States
Telephone: (801) 876-5875
source https://hayydcrrawf.wordpress.com/2016/09/23/bankruptcy-attorneys-grantsville-ut-801-676-7309-will-i-lose-my-car-if-i-file-bankruptcy-chapter-13/
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