A Los Angeles-Area Lawyer to Help Prevent Repossession
Individuals considering bankruptcy often worry that they will lose their cars or other motor vehicles to repossessions. California exemptions allow people who file bankruptcy to keep their cars up to a certain value. If your car exceeds the value stipulated in the exemption, you may still be able to keep it by reaffirming the debt. A bankruptcy attorney can advise you about the reaffirmation process, which essentially involves removing the debt from the bankruptcy estate and continuing to make payments.
Call a Los Angeles-area lawyer at the Leventhal Law Group, P.C. at 818-456-0397.
As an experienced bankruptcy lawyer, I understand how to protect your motor vehicle through the reaffirmation process. In fact, I volunteer at the reaffirmation clinic in the local bankruptcy court, helping individuals with the paperwork required for reaffirmation and answering their questions about the process.
Alternatives to Reaffirmation
In addition to being required to meet with an attorney, individuals considering reaffirmation should keep in mind that there are alternatives. For example, the car company may not require you — or even allow you — to reaffirm the debt. You may be able to simply continue to make payments. Moreover, in Chapter 13 you may be able to have the outstanding loan restructured in a cram down when the amount you owe is significantly more than the fair market value. This could reduce the amount of your payment and save you interest.
How Chapter 7 Deals With Car Loans - Redemption
Chapter 7 bankruptcy requires the liquidation of all property that exceeds the California exemptions. If you wish to keep your car in a Chapter 7, applying for a redemption may be your best option if the car is worth less than the outstanding loan amount. A redemption allows you to "redeem" the car for the actual value.
You may wonder how you will get the money needed to redeem the car. Not surprisingly, there are loan companies that specialize in lending the amount required. However, it is important that you evaluate your options carefully so that you do not pay more to the redemption loan company than you would pay in a reaffirmation. I can help you determine the best approach for your situation.
Contact a Woodland Hills Bankruptcy Lawyer for Information About Car Loan Debt Relief
Call 888-324-9623 toll free to schedule a free initial consultation. At my law firm, you will always speak with an attorney, never a paralegal.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
