What Do I Get to Keep if I File Bankruptcy?

Keep Your Car and Other Assets After Filing a Bankruptcy Case

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]”In most cases, debtors with  experienced bankruptcy counsel find that they are able to keep all of the assets that they want to retain.”[/perfectpullquote]Want to keep your car after filing bankruptcy? You’re not alone, one of the first questions that people considering filing a bankruptcy case ask is, “if I file bankruptcy, can I still keep my car?” The answer to that question may depend upon a number of factors, but most debtors are pleased to find that they can keep their automobile after filing a voluntary bankruptcy petition. In this post, we will focus on the basic principles that commonly govern whether a debtor is able to retain an asset after filing a bankruptcy case.

Lien Rights of Creditors Bankruptcy Cases

Many of the consumer debtors that we have represented have owned assets subject to a loan.  Most of our clients have purchased their vehicles under a vehicle retail installment contract (in plain terms, a car loan). If your car loan is current when you file your bankruptcy case, you can continue to make your car payment and keep your car.

If you are behind on your car payments, you may still be able to keep your car by catching up on your missed payments over time in a case under chapter 13. In fact, some borrowers who are behind on their car payments when their cases are filed, keep their cars by catching up on the payments directly after their cases are filed, without chapter 13 repayment plans. Every case is different, and clients should discuss the most prudent course of action in their particular cases with a highly experienced and knowledgeable bankruptcy attorney.

Keeping your car through bankruptcy

You may be able to file bankruptcy and still keep your car. Make the most of your fresh start!

Other secured loans (that is, loans used to purchase assets where the lender retains the right of repossession) are treated similarly to automobile loans. For many reasons, loans secured by mortgages are governed by other rules. However, the basic framework remains the same and, if you continue to pay for your mortgage on time, your lender usually cannot foreclose upon your mortgage.

Reaffirmation of Debts

Reaffirmation Agreement

Discuss reaffirmation of debts with your bankruptcy lawyer.

Your vehicle lender or other secured creditor may request that you sign a reaffirmation agreement. A reaffirmation agreement is an agreement between a lender and its borrower that the pre-bankruptcy rights of both parties will continue in force even after the borrower’s debts are discharged. You may be able to keep your car without reaffirming the loan. Reaffirming a debt may have serious consequences, and debtors should discuss their particular situations with their bankruptcy attorneys before deciding whether a reaffirmation agreement is in their best interests.

The Interplay Between Equity and Exemptions

Debtors who owe much less on their vehicles than they are worth may face another challenge.  An unencumbered asset (that is, one that isn’t subject to a lender’s lien) in a case under chapter 7 of the Bankruptcy Code, may attract the attention of a chapter 7 trustee who may wish to sell the asset and distribute the proceeds to unsecured creditors. Similarly, in a chapter 13 case, parties in interest may object to the confirmation of a chapter 13 plan if the “liquidation alternative test” is not met. The liquidation alternative test requires debtors to pay their unsecured creditors at least as much as they would receive in a hypothetical case under chapter 7. In some chapter 13 cases, unencumbered assets may require debtors to increase their chapter 13 plan payments to provide a greater distribution to the holders of unsecured claims.

Exemptions are the first line of defense that debtors have against losing their unencumbered assets. The Bankruptcy Code enumerates certain exemptions that allow some debtors to retain their vehicles and homes. However, state law determines whether debtors residing in that state may use the federal exemptions contained within the Bankruptcy Code, or another exemption scheme provided under that state’s law. Pennsylvania residents are fortunate in that they may choose between the federal and Pennsylvania state exemption schemes. Selecting the most advantageous set of exemptions and wisely applying available exemptions should be something that you discuss with your bankruptcy attorney before your case is filed. In most cases, debtors with experienced bankruptcy counsel find that they are able to keep all of the assets that they want to retain.[perfectpullquote align=”left” cite=”” link=”” color=”” class=”” size=””]You may be able to continue to make your car payment and retain your vehicle after bankruptcy[/perfectpullquote]

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If you have bankruptcy related questions, you may wish to discuss them with an experienced bankruptcy attorney. Our law firm offers free initial consultations.

(412) 925-8194

 

 

We are a debt relief agency.  We help people file for bankruptcy relief under the United States Bankruptcy Code.

© 2018 Robleto Law, PLLC
Pittsburgh Bankruptcy Lawyers

Bankruptcy Pittsburgh | Find the Best Bankruptcy Lawyer for Your Case

Discharge in Bankruptcy Shown by Piggy Bank

Bankruptcy Discharge Piggy Bank Pittsburgh

Bankruptcy Pittsburgh. Engaging the Best Bankruptcy Lawyer for your Case May Be More Important than you Know.

In Pittsburgh, as in many other fine cities throughout the United States, businesses and consumers in financial turmoil must find the best bankruptcy lawyer to meet their unique circumstances.  Many will begin their search with the cost of a lawyer central in their minds.  In Pittsburgh, bankruptcy matters generally proceed as they do in other major cities; those with the best bankruptcy lawyers generally realize the most favorable outcomes. For that reason, those who seek out a cheap bankruptcy lawyer or the cheapest bankruptcy in Pittsburgh find they may have paid what they wanted but overpaid for what they received.

Those considering filing bankruptcy in Pittsburgh should consider the cost of Pittsburgh bankruptcy lawyers.  Generally, by the time debtors meet with their bankruptcy lawyers, they’ve become accustomed to tightening their belts.  However, engaging the cheapest bankruptcy lawyer may quickly prove to be false economy.  In truth, finding the best bankruptcy lawyer for a Pittsburgh bankruptcy must a full examination of the value of that bankruptcy attorney.  Of course, debtor must ask how much does it cost to file bankruptcy in Pittsburgh?  But, when considering the cost of filing bankruptcy in Pittsburgh, debtors must really take into account the complexity of their cases, the extent to which adverse parties may be involved in their bankruptcy cases and what other complications may arise over the course of each bankruptcy case.

FREE CONSULTATION – 412-925-8194

A chapter 11 bankruptcy case in Pittsburgh demands the watchful eye of an experienced Pittsburgh bankruptcy lawyer. When your business is on the line, along with the livelihood of its owners and employees, focusing on the cheapest bankruptcy lawyer in Pittsburgh is a clear error. For business reorganizations in Pittsburgh bankruptcy courts, realistic officers will hire competent business bankruptcy lawyers. When your business is on the line in bankruptcy, Pittsburgh bankruptcy lawyer selection could be the most important choice you may have to make.

Chapter 13 debtors face similar issues as do business bankruptcy debtor but on a different scale.  In a chapter 13 bankruptcy, Pittsburgh consumers often need to save their homes, vehicles and other assets that may be critical to the very survival of their families. As with chapter 11 bankruptcy, Pittsburgh needs bright, motivated lawyers to champion the cause of its consumer debtors who need to reorganize their financial burdens.

In chapter 7 bankruptcy Pittsburgh falls in line with other jurisdictions. In chapter 7 bankruptcy, individual debtors in Pittsburgh generally seek a clear pathway to discharge and a fresh start. It is important that in chapter 7 bankruptcy Pittsburgh debtors select a bankruptcy lawyer who will understand their particular circumstances and give them advice that will permit a Pittsburgh bankruptcy judge to award discharge.

In contrast to any other chapter 7 bankruptcy, Pittsburgh business chapter 7 cases demand the close attention of experienced, intelligent, creative and cautious bankruptcy Pittsburgh lawyers. Commercial chapter 7 cases are very different from the ordinary chapter 7 bankruptcy cases. A debtor must always have a good reason to file a bankruptcy in Pittsburgh that is never more pronounced than when it comes to commercial chapter 7 cases. Business debtors wind up their affairs and do not receive a discharge. On the other hand, certain other interested parties do receive the attention of a chapter 7 trustee, the United States trustee and the United States Bankruptcy Judge presiding over their case. There are occasionally (but not often) valid reasons to file a chapter 7 bankruptcy case for an entity that will not continue as a going concern.

At each level and for each chapter of the United States Bankruptcy Code, finding the best bankruptcy lawyer for a bankruptcy Pittsburgh may be the most important Pittsburgh bankruptcy decision a debtor could make. Contact us today for a free initial consultation. Learn how bankruptcy Pittsburgh can help you move forward with debt relief, a fresh start and a clean bankruptcy Pittsburgh.

Call for Your Free Consultation with a Pittsburgh Bankruptcy Lawyer to Discuss Whether Your Debts May be Discharged in Bankruptcy.

FREE CONSULTATION – 412-925-8194

We are a Debt Relief Agency. We Help People File for Relief under the United States Bankruptcy Code.

(c) 2017 Robleto Law, PLLC- Bankruptcy Lawyers in Pittsburgh.

Debt Lawyer in Pittsburgh

How do you stop all of the calls from obnoxious creditors once and for all? There’s no need for a new telephone number. Call a qualified debt attorney in Pittsburgh today. We will not charge you a fee for a no nonsense conversation. We are lawyers; we are not a bankruptcy mill and we are not interested in selling you a product that is not a good fit for you. We consider your present financial position and future goals.

We will discuss your debt and your expectations. Are you looking to buy a house in the next year or save the home you live in now? Do you owe more on your car than it’s worth or need to replace it but aren’t sure whether you can? Talk to a Pittsburgh bankruptcy lawyer.

We stop creditors calls. We stop foreclosures. We stop law suits. We help you discharge most unsecured debt obligations. We help you get a fresh start.