If you’ve considered filing for bankruptcy in Indianapolis, you’re probably concerned about what will happen to your possessions after the process begins. It’s hard to imagine how you’ll be able to keep your job or get a job without a car, so it’s really important to know exactly what will happen to your car.
Many people who have fallen behind on their car loans are in danger of having their car repossessed. The repossession will negatively impact their ability to work and make money to catch up on bill payments, so it’s a Catch 22. That’s why laws have been established to help people retain possession of their cars once they file for bankruptcy in Indianapolis.
After you file for bankruptcy in Indianapolis, creditors are prohibited from repossessing your car, no matter how far behind you’ve fallen on payments. The final decision about repossession is made once your case is finalized, so bankruptcy will either delay or completely prevent the loss of your car.
If you’ve filed for Chapter 7 bankruptcy, the laws protect your car from a forced sale. If your car is an older model, or if it has a lower resale value, you have a better chance of being able to keep your car once your bankruptcy is finalized. Discuss the pros and cons of filing for Chapter 7 with an attorney who has experience with bankruptcy in Indianapolis.
Another option which also allows you to keep your car is Chapter 13 bankruptcy. When you file for Chapter 13 bankruptcy, you are able to restructure the entire amount of debt you owe into one, more manageable monthly payment. This includes the money you owe for your car, credit cards, etc. Filing for bankruptcy in Indianapolis ultimately protects your car more if you can’t catch up on your car payments immediately.
In most cases, you have three choices after filing for bankruptcy in Indiana. You can surrender your car, reaffirm your loan or reduce the balance owed with a new lender. When you surrender your car, the difference between what the car is sold for and what you owe is either forgiven or refinanced. When you reaffirm your loan, your car cannot be repossessed, as long as you keep making payments after your bankruptcy is finalized. When you reduce the balance owed, your new loan is created based on the actual value of the car.
If you’re not sure if filing for bankruptcy is right for you, speak with an experienced attorney. Your bankruptcy attorney will review your debt and help you make the right decision about your financial future. Many people who have filed for bankruptcy in Indiana have found that it
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