Bankruptcy Filing Doesn’t Mean You Lose Your Vehicles
March 13th, 2010
Filing bankruptcy doesn’t mean you have to give up your car or motorcycle, as long as you’re current on your payments and it’s considered a reasonable vehicle expense. With chapter 7 bankruptcy there is no repayment plan for creditors. For secure debts, like mortgages and vehicle loans, the debtor either keeps paying the secured creditor or surrenders to collateral. The debtor lists his income and expenses in his bankruptcy filing. The purpose of listing income and expenses is to show that after deducting reasonable expenses, the debtor has no money left which to repay its creditors. If the debtor does not qualify for Chapter 7 he might be forced into Chapter 13 instead.
Entry Filed under: Business