Many people are concerned about whether they will be able to keep their automobile if they file for bankruptcy.
It makes sense: we live in a country in which car ownership is by and large a necessity. Even in New York City, the transit system is often inadequate when it comes to getting us where we need to go these days.
For the most part, you’ll be able to keep your car if you file for bankruptcy in New York State. If you own the car outright and it is worth less than a certain amount, it can be considered exempt property under New York and/or federal bankruptcy law and you can keep it. If you are still making payments on the car and want to keep it, you’ll have to still keep doing so. In Chapter 7 bankruptcy, also known as liquidation, you’ll need to become current on your car payments immediately. In Chapter 13 bankruptcy, also known as reorganization, a payment plan is designed that takes all of your debts into account, your car loan being one of them.
Debt doesn’t have to run you off the road. Call our office to find out more about bankruptcy relief today.