Do You Have To Give Back Your Vehicle In A Bankruptcy?
When you file for bankruptcy, there is a lot of confusion and possibly some anxiety about whether or not you lose all of your assets in the bankruptcy. This can be a scary thought, as you may be looking at losing your home and your vehicles. The last thing you want is to be homeless and unable to get back and forth to work when you are already at rock bottom in your finances. If you are worried about this, it may make you less likely to file for bankruptcy at all. Not everyone has to give back their assets in bankruptcy—it is usually decided on a case-by-case basis. Read on for more information about assets such as a vehicle and what factors may dictate whether or not you have to give back your vehicle.
The Age Of Your Vehicle
If your vehicle is on the older side and not worth all that much in resale value, you may be able to keep the vehicle. If your vehicle is not that old and you owe a lot of money on the vehicle, you may be instructed to give the vehicle back to the bank. This will not only help to satisfy the debt, but it will also help free up some money on your end to pay back other debts you may have, as well as to pay monthly payments you need to live, such as utilities, groceries, and mortgage or rent.
The Number Of Vehicles
If you have more than one vehicle at your disposal, you may be instructed to sell some of them to use the equity to pay back your debts. This is especially true if you have vintage vehicles that are worth a lot of money that you don't typically use every day to drive. If you have more than one vehicle and they aren't your everyday cars that you need to get you back and forth to work, you may have to sell them, or the bankruptcy court may sell them for you and use the money to pay back the debts you still have outstanding.
If you aren't sure if you have to surrender your vehicle in your bankruptcy, and you are worried about being without a vehicle at all, talk to the bankruptcy attorney about this beforehand and what other factors play a role in this. Don't let this stop you from getting out of debt and filing for bankruptcy. Discuss these and other questions or worries you may have with a bankruptcy attorney.