When you are facing considerable debt, you may be worried about losing your vehicle. Many Tennessee residents in difficult financial situations could potentially face car repossession if they are unable to make their payments. Luckily, you may not have to lose your vehicle if you are having money problems. Looking into bankruptcy options may be able to help you maintain ownership of vehicles and other assets.
The type of bankruptcy you file can have an impact on the status of your car ownership. If Chapter 7 is filed, you may be able to keep your vehicle if it does not go over a certain value, if payments are continued to be made on the vehicle, if it is an older vehicle and the debt can be discharged or other scenarios that a knowledgeable party could be able to give you more information on. Of course, the type of bankruptcy filed depends considerably on your personal situation.
If a vehicle may still be at risk of being lost under Chapter 7, you may wish to consider filing for Chapter 13 bankruptcy. This type of bankruptcy differs from Chapter 7 in the way that the entirety of a person’s debt is handled. If you wish to maintain ownership of your vehicle during a difficult financial time, considering these options may be prudent.
Understanding the workings behind car repossession can be difficult, and deciding which type of bankruptcy to file for can also be overwhelming. Individuals in this type of situation may wish to consult with an experienced party who can help find the best paths for you. Information on repossession and bankruptcy in Tennessee may be able to benefit your situation.
Source: sissmanlaw.com, "Can I Keep My Car?", , Sept. 1, 2014