A Chapter 7 bankruptcy discharge can be an invaluable tool for you and other Fort Lauderdale residents who are drowning in debt. During this type of personal bankruptcy, most types of debt can be wiped out, leaving you with a clean slate and the ability to start rebuilding your financial future. However, a Chapter 7 debt discharge does not necessarily mean you will avoid unpleasant consequences. Many of your assets may be liquidated to repay your creditors before the rest of your debt is forgiven. For those undergoing a Chapter 7, this means their home, vehicles and other property.
However, you may need your car for work, shopping and taking care of your family. It is simply unfeasible for many families to get by without a vehicle. Is there any way you can keep your car while going through a Chapter 7 bankruptcy?
According to Bankrate, the bankruptcy judge may consider the fact that you need your car for employment, school and other important errands. The federal or state motor vehicle exemption might be another way to keep from losing your vehicle in a personal bankruptcy. Some of the equity in your car may be protected from seizure with this exemption. This amount might be enough to cover the value of your car. Another option may be to convert to a Chapter 13 bankruptcy, which often gives people more flexibility in protecting their assets.
Bankruptcy law is complex, which is why you should not replace the content in this post with the advice of a lawyer.