When you file for bankruptcy, you have to provide all of the information about your assets to your bankruptcy trustee and attorney. Your assets like your house and your vehicle are things that need to be included in your bankruptcy. If you are going to be filing for bankruptcy, or you are in the middle of your bankruptcy, and you have a vehicle included in your bankruptcy, you may be wondering what happens to your vehicle. Read on for information to understand what happens when a vehicle is included in a bankruptcy.
Your Vehicle May Be Repossessed
If your vehicle is worth quite a bit of money, or you owe a lot of money on the loan for your vehicle, your vehicle may end up getting repossessed. The bank may want the vehicle back if it's worth it to them to take it. There are times when a vehicle is included and the bank may not want to deal with it so they won't take it back, or if you own your vehicle and it isn't worth too much money, you may be allowed to keep it. Your vehicle is how you get back and forth to work and is your source of transportation, so there is a chance that you may be able to keep your vehicle in some circumstances.
Your Vehicle May Have A Lien
Depending on your bankruptcy, your vehicle loan may need to be repaid. You may have a lien on the vehicle title until it's paid in full. Or there could be a lien on it until the bankruptcy is discharged. Again, this will depend on the type of bankruptcy you are filing and what the bankruptcy trustee allows.
You May Have An Option To Buy The Vehicle
You could have an option to purchase the vehicle if you still owe on it. The bankruptcy trustee may allow you to pay the loan on the vehicle at a lower cost, or for whatever they think it's worth. This may be less than the loan amount that is leftover. It will be a lower amount, and you will be able to keep your vehicle. Again, this depends on the bank and depends on what the trustee allows as well.
If you have a vehicle that you have a loan on, or you have one that you own, it will need to be included in your bankruptcy. What happens to it depends on your trustee and a few other things as well. Be sure to discuss this with your bankruptcy attorney so you know what exactly to expect from your bankruptcy.
For more information, contact a law service like C. Taylor Crockett, P.C.
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