http://www.Guardian-Law.com Utah Chapter 12 Bankruptcy Attorney Answers the Question: Will I lose my auto if I file for Bankruptcy? The reality is it depends.
If your vehicle is settled as well as you submit a chapter 7 case, your automobile has to be worth less compared to $3,000 (public auction value) as well as you could keep your automobile. If you and also a partner file a chapter 7 case with each other, your automobile has to be worth much less than $6,000 (auction worth) and you can keep your automobile. The $3,000 quantity is the "auto exemption" which is the Utah state law that allows you to keep your auto in bankruptcy.
Suppose your automobile is worth more compared to that? It depends. If the Chapter 7 Trustee assigned to your case thinks that they could access least $2,000 or more out of your automobile, then they will certainly have you take it to Erklens and Olsen in Salt Lake City, Utah as well as have your auto evaluated. The Trustee will normally give you the option to purchase the auto back from the bankruptcy estate if you want to.
-- allow's say you have a vehicle worth $10,000. The truck is repaid and you submit a chapter 7 situation and you are not wed. You use your $3,000 car exemption to your truck and that guarantees $7,000 is unexempt. The Trustee would have you give your vehicle appraised. If the evaluation came back at $10,000 you would certainly have 2 options.
Choice 1: You might leave the truck with Erklens and also Olsen to be cost public auction. Once sold, the Trustee would certainly hand you a look for $3,000 (which is your car exception); and also the Trustee would take the continuing to be $7,000 to pay himself or herself and your lenders.
Choice 2: You intend to maintain the vehicle, so you pay the Trustee $7,000 which is the unexempt quantity and also the Trustee would certainly use the cash to pay your creditors and also pay himself or herself for providing your bankruptcy estate.
If you submit a chapter 13 bankruptcy situation, the Trustee does not take any type of properties, so you do not have to fret about shedding an auto in a chapter 13 instance. The equity in the auto is calculated to identify your go back to unsecured lenders nevertheless, which is an other subject.
If your car has a finance on it and your equity in the auto is much less than $3,000 (single) or $6,000 (wed); you could normally keep the automobile if you intend to maintain the loan as well. If you do not wan to pay the finance, after that you can "surrender" the automobile in your chapter 7 case.
There are some terms you need to understand about your automobile. As an example is the car loan secured/unsecured, and whether it has equity. So below are some terms you need to know and also comprehend: Secured = Your automobile has a lending on it as well as it's listed on the auto title as a lienholder. Unsecured = Your vehicle is totally free and clear (without any loan on it) (or the car loan you have actually was never ever placed on the title, thus providing the finance unsecured. Equity = the internet worth of your car. In bankruptcy we consider either an auction value or a reasonable market price.
Protected (your car has a vehicle loan), however inverted on the loan.
Maintain it if you want to. If your automobile has a financing against it, you could detail the financing in bankruptcy then examine a box that says "reaffirm." This implies that you'll keep the vehicle loan with the same payments/interest rate/balance/etc. Or surrender it. If your automobile has a lending versus it and also you want to surrender the car, then you return it to the financial institution and also wipe out the staying balance of the finance.
Protected, yet your automobile has equity above the lending. You could still declare and also keep the vehicle, yet, Utah law just allows us safeguard $3,000 of equity in a car for every spouse, or a consolidated $6,000 of equity in a solitary lorry if both spouses get on the title. If you have more than $3,000 (or $6,000) of equity, the trustee might market your car off to pay creditors.
Unsecured. You own your automobile totally free and also clear. If it is much less than $3,000 in worth, you will certainly not lose it. Simply bear in mind that we can protect one vehicle for hubby approximately $3,000 as well as one for partner as much as $3,000 or a solitary $6,000 automobile if both partners get on title.
Chapter 13. The same analysis appllies, however, the chapter 13 trustee will normally object if you aim to keep greater than 2 automobiles for a family members or attempt to keep a deluxe lorry.
Simply keep in mind that in a Chapter 13, we can stretch out the car loan to 60 months and alter the interest rate to 5%. We could additionally give a repossessed auto back as well as catch up on missed out on payments.
If you want the best bankruptcy lawyers in Utah Give us a call 801-676-7308 The address : 8833 S Redwood Road, West Jordon, UT 84088
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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://smward153.blogspot.com/2016/09/bankruptcy-law-firm-herriman-ut-801-676.html
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