Should I Sell My Car Before Declaring Bankruptcy

In general yes you can sell your car before filing for bankruptcy. You need to be careful however that you sell the car for fair market value. If you sell your car for far less than it is worth then you can be accused of artificially lowering your assets. Also you need to be careful not to pass the car off to a relative because the trustee can potentially sue the relative for return of the vehicle.

No matter what the question is the first thing you should do is hire an experienced bankruptcy attorney. Even advice from a lawyer who is experienced but isn't working on your case could be detrimental, because each case is unique. Any and all other advice should be passed onto your bankruptcy attorney to make sure that it holds water.


Selling Assets in Bankruptcy:

If you are filing for Chapter 7 bankruptcy you will probably not be able to keep assets like your car. There are specific guidelines and rules in the bankruptcy code that specify what property can and can't be kept. Usually one car is allowed to be kept as long as the fair market value is less than $5,000. Chapter 7 bankruptcy is generally considered liquidation because the creditor settles for taking your assets as a means of repaying some of the money that you owe them.

If you are filing for Chapter 13 bankruptcy it is probably due to the fact that you still have a regular income. Because of your need to go to work you will most likely want to keep your automobile. Chapter 13 bankruptcy offers a better solution for those who need to keep their vehicles. In somekeyword the court will outline a payment plan and the terms associated with it. The debtor agrees to follow all of the conditions of the payment plan exactly. The payment plan usually takes place over 3-5 years and at the end the debt will be completely paid back and that is when your case will be 100% over.

Speak With A Bankruptcy Attorney:

There are many different types of bankruptcy, all of which are complex in their own way. If you are considering filing for bankruptcy you need to speak with an somekeyword. They will be able to assess your current situation and help you make a well informed decision as to what steps you should take.


John N. Skiba Bio:

I am a consumer somekeyword focusing on consumer filings under Chapters 7, 11, and 13 of the Bankruptcy Code. I also handle Fair Debt Collection Practice Act cases to stop aggressive creditors.

I have dedicated my legal career to helping those who are struggling with debt and financial set backs. Many are unaware of the protections and relief that the law provides in rebuilding their financial lives.