Today, I am concerned about how to advise my clients regarding the disposition of their vehicle after they have made the difficult decision to file for bankruptcy. When this occurs, a decision must be made regarding the vehicle, and every circumstance is unique. The client always has the final say.
Before we can arrive at a unified position on what to do with the car, a variety of factors must be analyzed. Is this vehicle financed? Does the debtor have the means to repay the automobile? Are the debtor's payments past due? How much is the monthly cost? How much is the automobile worth? Is the automobile in excellent shape? What are the client's requirements?
These factors will be evaluated to determine whether or not it is in the client's best interest to reaffirm the debt or return the collateral. Good vehicles with reasonable interest rates can often be reaffirmed on the same terms as before the bankruptcy for clients who are employed and can afford the payments.
If the vehicle is in poor condition, requires maintenance, and is subject to an oppressive interest rate, it should likely be surrendered. As creditors are confident that you will not be able to discharge your debt, many individuals are financed for a new automobile shortly after filing for bankruptcy. Numerous insolvent individuals fought to the bitter end to repay their creditors to the best of their ability.
Bankruptcy is a last resort for them. This frequently results in the repossession of a fine vehicle and the financing of a real piece of junk. This indicates that your Seattle bankruptcy attorney will likely encounter situations in which reaffirming anything in bankruptcy is generally undesirable. However, there are always situations in which ratification of a reaffirmation agreement is necessary.
Consultation with your attorney can be extremely beneficial when making this choice. A bankruptcy attorney should be able to analyze your finances and advise you on how to achieve your objectives most efficiently. Contracts of reaffirmation should not be engaged into lightly.
The key point, however, is to be reminded that filing for bankruptcy can provide you with a variety of property management options. Do not be hesitant to consult a lawyer and discuss your options. ""Bankruptcy can be an enormous stepping stone out of the financial abyss and set you up for a second chance at financial stability.""
" - https://www.affordablecebu.com/