CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Will Bankruptcy Help Protect My Vehicle from Repossession?

Bankruptcy And Vehicle Repossession Tampa, St Petersburg, And Pasco Florida.The idea of bankruptcy might be intimidating, but filing can actually help you in a variety of ways. One of the biggest benefits of bankruptcy is the protection it provides regarding your assets. You can use bankruptcy to protect things of value you own that you might otherwise lose if your financial woes continue.

A vehicle is a good example of this, but you shouldn’t automatically assume you’ll get to keep your vehicle just by filing for bankruptcy. Bankruptcy only truly protects your vehicle and other assets if they are listed properly in your filing documents and if you meet certain obligations regarding the money you owe on those assets.

Chapter 7 vs. Chapter 13 Bankruptcy and Your Vehicle

It’s also important to remember that the chapter bankruptcy you choose will affect the protection you receive for your assets, including your vehicle.

If you are filing for Chapter 7 bankruptcy you have several options regarding your vehicle. If you have not fallen behind on payments and you’re able to continue making payments during and after your bankruptcy is complete, bankruptcy will have limited bearing on the ownership of your vehicle.

Another option is to reaffirm the debt on your vehicle and continue making payments. You can learn more about reaffirming a debt here.

If you opt for Chapter 13 bankruptcy your vehicle loan will be handled a bit differently. Most people who file for Chapter 13 are able to keep their vehicles and restructure the loan as part of their bankruptcy payment plan. This allows you to catch up on payments you’ve missed and then continue to pay on your vehicle loan for the three to five year duration of your Chapter 13 plan.

The good news is, regardless of how you choose to handle your vehicle in either chapter bankruptcy, filing initiates an automatic stay.

This means if you’re receiving calls from creditors about your vehicle loan or repossession proceedings have begun, you’ll get a break. Vehicle loans are secured, so you won’t receive an automatic discharge for what you owe. You won’t need to worry about anything happening immediately and you can breathe easier knowing that every time your phone rings it won’t be someone demanding payment or threatening to take your vehicle from you.

What If You Own the Vehicle Outright and There is No Loan?

In some cases, the person filing for bankruptcy owns their vehicle and has completed any loan payments, assuming there was originally a loan.

Unfortunately, just because you own your vehicle outright doesn’t mean it will be automatically protected when you file for bankruptcy. The trustee has the right to liquidate property you own when you file for bankruptcy, so you’ll need to take action to prevent this.

However, your vehicle’s value will need be within the exemption limits set in bankruptcy laws. If your vehicle exceeds this limit the trustee can sell the vehicle and use the proceeds to repay your creditors.

The value of your vehicle and the amount you owe, as well as your state’s specific guidelines and your overall situation all affect whether or not you can protect your vehicle in bankruptcy. Every case is unique, which is one of the reasons it’s so important to work with an experienced bankruptcy attorney when filing.

For more information or to learn if you can protect your vehicle when you file for bankruptcy, contact the bankruptcy Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

What Happens If My Spouse Dies During Bankruptcy?

Seniors declaring bankruptcy have many concerns. One of the most pressing is how their health or their spouse’s health might...
Read More

Can I File for Bankruptcy Without a Job?

Bankruptcy is often considered a tool used by people without money, without income, and without any financial hope. The truth...
Read More

Should I Use Retirement Savings to Avoid Bankruptcy? A Tampa Bankruptcy Lawyer Can Help You Protect Your Retirement Nest Egg

Withdrawing money from your retirement savings is rarely advised by financial experts, even if you are facing bankruptcy. Working with...
Read More

Can You File for Bankruptcy and Keep Your Home

Foreclosure is something that occurs after a homeowner has missed multiple mortgage payments. Working with a Florida bankruptcy attorney helps...
Read More

Is There Such a Thing as Mortgage Bankruptcy?

Your home is one of your primary concerns when filing for bankruptcy. Can you claim bankruptcy and keep your home?...
Read More

What Do You Need to Know about a Home Auction in Bankruptcy?

Home auctions are a common topic that arises when someone is faced with the prospect of bankruptcy. Bankruptcy protection for...
Read More

Can a Florida Bankruptcy Attorney Help Me Avoid Eviction

Losing one’s home is one of the most common concerns you can have when filing for bankruptcy. A Florida bankruptcy...
Read More

Covid-19 Tax Tips

The COVID-19 pandemic has affected a variety of things including taxes. These COVID tax tips can help you prepare and...
Read More

How Can a Bankruptcy Attorney in Tampa Florida Help Me If I Fall Behind on My Mortgage After Filing for Bankruptcy?

Many people find that filing for bankruptcy provides all of the financial relief they need to get back on track....
Read More

Are Bankruptcy Laws Designed to “Trip” You Up? Here’s How a Bankruptcy Law Firm Can Help You Avoid Trouble

It’s no surprise that people are skeptical of how bankruptcy can help their financial situation. Many have heard stories about...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions