http://www.AscentLawFirm.com Utah Chapter 13 Bankruptcy Lawyer Answers the Question: Will I lose my car if I apply for Bankruptcy? The fact is it depends.
If your auto is settled and also you submit a chapter 7 case, your automobile needs to be worth less compared to $3,000 (public auction value) as well as you could keep your automobile. If you and a partner data a chapter 7 instance together, your vehicle has to be worth much less than $6,000 (public auction value) and you could keep your auto. The $3,000 amount is the "car exemption" which is the Utah state law that allows you to maintain your auto in bankruptcy.
Suppose your auto deserves more compared to that? It depends. If the Chapter 7 Trustee designated to your situation believes that he or she could access 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 and have your car evaluated. The Trustee will typically offer you the alternative to purchase the car back from the bankruptcy estate if you want to.
-- why don't we's state you have a vehicle worth $10,000. The truck is paid off as well as you submit a chapter 7 case and you are not married. You use your $3,000 auto exception to your truck and that means $7,000 is unexempt. The Trustee would certainly have you get your truck assessed. If the assessment came back at $10,000 you would have 2 choices.
Alternative 1: You might leave the truck with Erklens as well as Olsen to be cost auction. Once marketed, the Trustee would hand you a look for $3,000 (which is your automobile exception); as well as the Trustee would take the staying $7,000 to pay himself or herself and also your lenders.
Choice 2: You wish to keep the vehicle, so you pay the Trustee $7,000 which is the unexempt quantity and the Trustee would certainly utilize the cash to pay your creditors and pay himself or herself for administering your bankruptcy estate.
If you file a chapter 13 bankruptcy situation, the Trustee does not seize any kind of properties, so you do not have to bother with shedding a car in a chapter 13 situation. The equity in the car is computed to determine your go back to unsecured financial institutions nevertheless, which is an other topic.
If your car has a loan on it as well as your equity in the auto is much less compared to $3,000 (solitary) or $6,000 (married); you can normally keep the automobile if you intend to maintain the finance as well. If you don't wan to pay the financing, then you can "surrender" the vehicle in your chapter 7 instance.
There are some terms you need to know about your auto. Is the funding secured/unsecured, and also whether or not it has equity. Here are some terms you need to know as well as comprehend: Secured = Your auto has a financing on it as well as it's provided on the auto title as a lienholder. Unsecured = Your automobile is cost-free and also clear (with no finance on it) (or the lending you have actually was never ever put on the title, therefore making the funding unsecured. Equity = the web value of your car. In bankruptcy we take a look at either a public auction value or a reasonable market price.
Secured (your auto has a car loan), yet upside-down on the loan.
Keep it if you want to. If your automobile has a loan versus it, you can detail the financing in bankruptcy and after that examine a box that states "reaffirm." This implies that you'll keep the auto loan with the very same payments/interest rate/balance/etc. Or surrender it. If your automobile has a financing against it as well as you intend to surrender the auto, then you return it to the financial institution and wipe out the remaining equilibrium of the loan.
Protected, but your vehicle has equity above the lending. You can still reaffirm and keep the automobile, yet, Utah law only lets us protect $3,000 of equity in a vehicle for each and every partner, or a mixed $6,000 of equity in a single vehicle if both spouses are on the title. If you have more than $3,000 (or $6,000) of equity, the trustee may offer your car off to pay lenders.
Unsecured. You possess your car totally free and also clear. If it is much less compared to $3,000 in value, you will certainly not shed it. Just remember that we can shield one automobile for husband approximately $3,000 and also one for spouse up to $3,000 or a solitary $6,000 vehicle if both partners get on title.
Chapter 13. The exact same analysis appllies, yet, the chapter 13 trustee will normally object if you attempt to keep greater than 2 vehicles for a family or aim to keep a luxury lorry.
Just keep in mind that in a Chapter 13, we could stretch out the auto loan to 60 months and also change the rate of interest to 5%. We could also obtain a repossessed automobile back as well as capture up on missed settlements.
If you want a great bankruptcy lawyer in Utah Pick up the phone and dial 801-676-5507 The location : 8833 So. Redwood Rd, West Jordan, Utah 84088
The Absolute Best bankruptcyAttorney in West Jordan Utah is here to assist you in your hard case. I hope this answered the question you had.
This video is for you if you need to know who is the best bankruptcy lawyer in Lehi Utah and how to contact him.
#AscentLawFirm 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
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://frranausterll.blogspot.com/2016/09/bankruptcy-lawyers-salt-lake-ut-801-676.html
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