For many, an auto loan is among their biggest investments and having access to a reliable vehicle is vital to their ability to earn a living, support their family, and maintain a reasonable quality of life. The good news is you can likely keep your vehicle, if you choose, and still discharge debt through a Chapter 7 or Chapter 13 bankruptcy.
The Denver Bankruptcy law firm of George T. Carlson & Associates is dedicated to assisting Colorado residents in dealing with creditors, bad debt and mortgage foreclosure. We understand you have questions. And we know considering bankruptcy is an uncertain time in everyone’s life. But we have also seen the relief that a fresh start provides as clients enter a new life free from collection calls, creditors and the bad debt that left them unable to enjoy life.
Auto Loans & Bankruptcy in Denver
When it comes to auto loans, U.S. bankruptcy laws permit you to keep up to $5,000 in equity in your vehicle. This is typically sufficient for most people to keep their primary vehicle:
- If you own a vehicle less than three years old, chances are good you owe more than it’s worth, thanks to depreciation. Thus, you have no equity and can keep the vehicle.
- If your vehicle is older, but still under loan, you likely have less than $5,000 in equity – as when you owe $10,000 on a $15,000 vehicle – which allows you to keep the vehicle.
- The amount of the exemption doubles to $10,000 if you are married.
- If you have an older vehicle that is paid for, it may still be exempt under the dollar limits.
- If you have a leased vehicle, you have no equity and can keep the vehicle.
How you file bankruptcy also impacts how a car loan is handled. Chapter 13 bankruptcy should fully protect a vehicle that is paid for. In Chapter 7 bankruptcy, you may be entitled to continue paying for a car loan with reduced interest. You loan may also be restructured so that you only have to pay an amount equal to the vehicle’s current market value.
Denver Bankruptcy Help
Speaking with an experienced Colorado bankruptcy lawyer is your best bet. There are a number of questions you need to answer.
- Is a vehicle worth keeping when I owe more than it’s worth?
- Would I be better off surrendering the vehicle?
- Should I lease a vehicle before filing?
- Should I transfer the title.
There are a number of things you can do within the law to prepare yourself for filing for Chapter 13 or Chapter 7 bankruptcy protection in Colorado. And there are a number of things that you should not do – moves that could be construed as bankruptcy fraud or the hiding of assets. Bankruptcy is a powerful law that can leave you virtually free of debt and ready for a new start to life. But once completed, it will be years before you are eligible to file again.
Taking the time to get solid legal advice is a critical first step toward protecting your rights and securing your future financial well-being.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
