When an individual is contemplating bankruptcy they are highly concerned as to what they are going to lose. One of the reasons they are even thinking about this type of debt relief is so they won’t lose everything. If a bankruptcy means that everything is going to be repossessed then what is the point of going through a bankruptcy action?
Keeping Your Car
Two of the biggest assets that most people are worried about is their home and their vehicle. Most people need their car for work and family needs and are viewed as a necessity not a luxury. It will first depend on which bankruptcy you are filing under. In a chapter 7 Bankruptcy it will depend on what exemptions are available to you that you can use against the loan on the vehicle if there is a loan. When it comes to secured debt in a chapter 7 bankruptcy there are three options that may be available. These are redemption, reaffirmation or surrender.
If by chance you have managed to keep up on your car payments you can choose to keep the vehicle but you will have to reaffirm or redeem the car. If you decide that you don’t want to keep it then you will have to surrender it in your bankruptcy. You may not be sure what the best choice is for you or fully understand your options. Your Houston bankruptcy lawyer will be able to assist you with this by informing you as to what these options really mean.