As I have tried to explain before, there's an incredible amount of myths and misinformation your Seattle Bankruptcy Attorney is attempting to combat. People think if they have a job, they can't file; if they make too much money, they can't file; if they still have a home, they can't file. So much to write about and share.
Today, I am concerned with how to advise my clients on what to do with their car when they have made the difficult choice to file bankruptcy. When this happens, a decision must be made on the car and, of course, every situation is different. The decision always belongs to the client.
When determining what to do with your car, please be advised that many factors must be analyzed. What are the terms of the loan, including interest rate and payment? Are you behind on payments? Can you afford to keep it? Can you get financed for another? What are your particular circumstances and requirements for commuting and traveling?
These factors will be analyzed to determine whether or not it would be in the best interests of the client to reaffirm the debt or surrender the collateral. Good cars with decent interest rates for clients who have work and can afford the payments can often be reaffirmed on the same terms as before the bankruptcy.
If the car is in poor condition, in need of repairs and under an oppressive interest rate, perhaps the car should be surrendered. Many people have been financed for a new car shortly after filing bankruptcy as creditors feel secure that you will not be able to discharge that debt. Many people who find themselves in bankruptcy have fought to the bitter end
Bankruptcy is no one's first choice. It is always a last resort. People often don't consider bankruptcy until the water is right at their head and they cannot fathom any way to continue. This usually means they have gotten into horrible car situations and will need to surrender the car.
Talking with your attorney can be invaluable when making this decision. An attorney should be able to look at the numbers and help you find a way to best achieve your goals through bankruptcy. Reaffirmation agreements should not be entered into lightly.
The main point, however, is to be reminded that filing bankruptcy can give you several options on how you want to handle your property. Do not be afraid to approach an attorney and talk about your options. Bankruptcy can be a huge stepping stone out of the financial abyss and set you up for a second chance at financial security.
Today, I am concerned with how to advise my clients on what to do with their car when they have made the difficult choice to file bankruptcy. When this happens, a decision must be made on the car and, of course, every situation is different. The decision always belongs to the client.
When determining what to do with your car, please be advised that many factors must be analyzed. What are the terms of the loan, including interest rate and payment? Are you behind on payments? Can you afford to keep it? Can you get financed for another? What are your particular circumstances and requirements for commuting and traveling?
These factors will be analyzed to determine whether or not it would be in the best interests of the client to reaffirm the debt or surrender the collateral. Good cars with decent interest rates for clients who have work and can afford the payments can often be reaffirmed on the same terms as before the bankruptcy.
If the car is in poor condition, in need of repairs and under an oppressive interest rate, perhaps the car should be surrendered. Many people have been financed for a new car shortly after filing bankruptcy as creditors feel secure that you will not be able to discharge that debt. Many people who find themselves in bankruptcy have fought to the bitter end
Bankruptcy is no one's first choice. It is always a last resort. People often don't consider bankruptcy until the water is right at their head and they cannot fathom any way to continue. This usually means they have gotten into horrible car situations and will need to surrender the car.
Talking with your attorney can be invaluable when making this decision. An attorney should be able to look at the numbers and help you find a way to best achieve your goals through bankruptcy. Reaffirmation agreements should not be entered into lightly.
The main point, however, is to be reminded that filing bankruptcy can give you several options on how you want to handle your property. Do not be afraid to approach an attorney and talk about your options. Bankruptcy can be a huge stepping stone out of the financial abyss and set you up for a second chance at financial security.
About the Author:
Don't make decisions about your financial future based on myths and misinformation. Look into Chapter 7 today. For a free consultation, get in touch with your Seattle Bankruptcy Attorney today.
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