How Can I Keep My Vehicle If I File For Chapter 7 Bankruptcy?

Dealing with financial difficulty and a seemingly overwhelming amount of debt can place a large amount of stress on every aspect of your life. Fortunately, you have options for getting out of debt so you can move on with your life and start rebuilding your credit score. One option debtors have is Chapter 7 bankruptcy, also known as liquidation bankruptcy because debtors can achieve debt forgiveness by liquidating some assets.

For many people, the thought of losing property and assets is a major issue and may even stop them from filing for bankruptcy altogether. This is especially true for bigger assets like homes and motor vehicles. Having access to reliable and personal transportation can be very important in running a family and getting to and from work. Fortunately, you can keep many of your assets, including your motor vehicle, through bankruptcy exemptions and other actions.

Keeping Your Automobile
If you are filing for Chapter 7 bankruptcy but want to take action to keep your vehicle, discuss the following with a bankruptcy attorney:

* Exemptions According to the North Carolina bankruptcy code, debtors can exempt up to 3,500 in equity on their vehicles. If the equity is more than 3,500, you can use the wildcard exemption to cover the remaining amount as long as the vehicle was purchased more than 90 days prior to the bankruptcy filing.
* Reaffirmation Agree with the car finance provider that you can make payments on the vehicle without discharging your debt.
* Redemption pay the finance company the value of the vehicle

By speaking with a professional and skilled bankruptcy attorney, he or she can discuss your options for keeping your vehicle after filing for bankruptcy. For more information about your bankruptcy case, contact a Raleigh bankruptcy lawyer and take action today.