Car Loans in Bankruptcy
What Happens to Your Car Loans in Bankruptcy?
If you have a car with $25,000 worth of equity and you want to file bankruptcy in Arizona, you have a problem. The Arizona bankruptcy exemption for an automobile is $5,000 worth of equity per debtor; in some cases, it can be as high as $10,000 per debtor. There are solutions available, but they are not always easy. An experienced bankruptcy lawyer can help you through the process.
At AZBK Lawyers, we help people across Arizona reduce their debt. Whether you are unable to pay off your car loans, struggling with credit card debt or facing multiple concerns, we can come up with a plan tailored to your concerns. The solutions may not be easy, but they are out there.
Managing Auto Loans in Bankruptcy
In theory, bankruptcy should work the same for everybody. While bankruptcy courts have tried hard to standardize the process, they have not found a consistent way to do that for car loans. The way the rules regarding car loans are written, judges are given a lot of freedom of interpretation. Since every judge handles these cases differently, you want an experienced attorney on your side who can back your claim.
In the best case scenario, people filing for bankruptcy own their car outright. If you own your car or it’s over-encumbered, you should be able to find a way to keep it. If you have outstanding loans on your car, you will have to decide how badly you want to keep your car.
Most people in Arizona with overwhelming debt end up happier and less anxious if they get rid of their car and get a fresh start. Attorney Wright will help you do whatever it takes to meet your goals. We will explore your options in both Chapter 7 and Chapter 13 bankruptcy.
Car loans are quite possible the trickiest part about filing for bankruptcy. They are hard to predict, but once we understand your goals, we will work to help you reach them. Located in Phoenix, we represent clients across Arizona. Call (602) 648-3274 or contact a Phoenix Bankruptcy Lawyer online today for a free initial consultation.
We are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code.