Chapter 7 And Vehicle Surrender
Just like foreclosures, many people reach a point where they are faced with the possibility of surrendering their vehicles. Being immobile is worse than not having a house to live in. When an individual files for Chapter 7 bankruptcy, they have an option of redemption which allows them to retain some of their collateral debts. |
Sponsored Links :
|
For example, if you bought a car worth $8,000 and secured a loan for $13,000, then filing for bankruptcy would waive the additional $5000 you owe provided you paid/pay the $8000. This procedure also lets you retain your car and clear out your obligations successfully. The bottom line is that by filing for bankruptcy under Chapter 7, you save money.
Not all secured loans qualify for redemption, and the court can actually refuse your request based on the arguments of the creditors. To avoid vehicle surrender, you can also renew the terms of the car loan agreement so that you can keep it. The process of vehicle surrender is very simple. In bankruptcy cases, if a debtor does not wish to keep the vehicle, then he or she may simply surrender the vehicle exchange for a clean record. In some cases, surrender is simply not possible. If the vehicle has had too many accidents, for example, then the surrender may not be possible. However, the only way you can get them to take away the vehicle is if you stop paying your installments. This way the company will seize the car. Remember that it will also show on your credit report.
More Articles :
|
