Every state has its own rules when it comes to Bankruptcy. This applies to both the Chapter 7 and Chapter 13 Bankruptcies. There are also Federal laws concerning this. If you are thinking of filing for a Chapter 13 bankruptcy there are several things you need to know. No doubt you are going to be concerned about keeping your vehicle and you want to know how this is done.
Chapter 13 Obligations
The first thing you need to determine is if you are going to qualify for a Chapter 13 bankruptcy. What you may want to do is seek out the services of a qualified bankruptcy attorney. This expert will be able to assist you through the entire process of this form of debt relief.
If you still have a debt to be paid on your vehicle chances are the lender insisted on you having auto insurance coverage on the vehicle. In some states this is mandatory even if you don’t owe money on the vehicle.
When you file for a Chapter 13 bankruptcy a creditor who has a lien against your vehicle may object to your bankruptcy because you failed to keep up the auto insurance coverage on the vehicle. Depending on which state you are filing it this could give grounds for the creditor receiving future relief provisions as part of the bankruptcy agreement. You may have an opportunity to re-instate your insurance and if you don’t then the vehicle could end up being repossessed.
This is just one of many areas of bankruptcy that can be complex and why it is a good idea to have a Houston bankruptcy lawyer represent you.