Can I Keep My Car if I File Bankruptcy in New York?

If you can no longer pay your bills, if your financial burden has reached a breaking point, then you should consider filing for bankruptcy. It is the best way to deal with a financial situation that you cannot manage alone. Bankruptcy is a legal proceeding that will offer you protection and give you a fresh start. Filing for bankruptcy immediately stops your creditors from seeking further payment on your debt.

Brooklyn New York bankruptcy attorneys have the expertise and experience to help you file the paperwork necessary for bankruptcy. They can also help you navigate through the procedures involved with the discharge of your debt.

The Two Kinds of Bankruptcy

Most people file a chapter 7 or chapter 13 bankruptcy. Chapter 7 is a straight liquidation. It consists of the complete wipe out of your debts. Property that is non-exempt will be sold to pay down some of what you owe to your creditors. Otherwise, you will be free and clear of debt by the end of the process.

Chapter 13 is essentially a debt repayment plan. A court-appointed trustee will be assigned to your case. You and your lawyer will sit down with this person and come up with a repayment plan that works for you. To file for chapter 13, you must have a steady income.

Can I Keep My Car?

You may need your car to keep your job. You may also need it to see to the needs of your family. If you are in circumstances in which the repossession of your car would be an even more devastating blow to your financial and life situation, then you should file for chapter 13. It will allow you to keep your car and other valuable property. Under chapter 13, you will be given more time to catch up with car payments that are in arrears.

The Brooklyn New York bankruptcy attorneys at Ursulova Law Offices can best advise you on how to proceed. If you are thinking of filing for bankruptcy, you should contact Ursulova Law Offices to get all the facts before you make your final decision.