Will I lose my car if I file bankruptcy?
Americans have become dependent upon private transportation. Our office recognizes the importance of an automobile to the typical citizen. Unfortunately, the legislature in the State of Utah has only provided very limited protection for this necessity. The laws of the State of Utah provide that an individual is entitled to retain up to $2,500.00 in equity in a motor vehicle. A married couple essentially has a total amount of $5,000.00 that they can designate towards retention of an automobile. In jointly filed cases, it is often a better strategic move to divide the motor vehicle exemption amongst two (2) separate vehicles in order to protect the family’s need to have a means for each wage earner to have sufficient transportation. It is also necessary to note that even if you have some equity in a vehicle, if you are not capable of making the regular payments under the purchase contract, that car is in jeopardy of being repossessed. Filing a Chapter 7 Bankruptcy may not provide you the protection that you desire to maintain possession of your vehicle(s). On the other hand, filing a Chapter 13 Bankruptcy provides additional relief in which you can pay for the automobile over a period of years rather than having to make a separate monthly payment on the same. As with other areas within the Bankruptcy realm, protecting your means of transportation often requires pre-bankruptcy planning. Our office can discuss the methods available to best attain your goals regarding your automobiles, once you schedule an appointment to meet with us. In the vast majority of cases, there are alternatives within the Bankruptcy Code that will permit you to retain your vehicle in one manner or another. Please schedule an appointment to meet with one of our attorneys if you would like to discuss your options in detail. We can let you know which Chapter would work best for your situation, and we can let you know what to expect once you file.
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Jory L. Trease, Inc.    |    Salt Lake City    |    Taylorsville    |    (801) 596-9400    |    E-mail: questions@jtbankruptcy.com