Cars and Bankruptcy

What happens to my car if I file for bankruptcy in Washington State?

If you live in Bellevue, WA you need your car to get to work, pick up kids from school, and run even the most trivial errands. In fact, you could argue that would be almost impossible to get around without your car, unless you made dramatic changes to your lifestyle. This is why so many clients ask our Bellevue car repossession lawyers, “Will I lose my car if I file for bankruptcy?”

If you have questions about your legal rights and options when it comes to repossession of your vehicle, we invite you to call and talk to one of Bellevue bankruptcy attorneys right away. Our King County vehicle repo attorneys understand what is at stake when it comes to your ride. And, we will fight to protect you and your vehicle to the greatest extent possible under the Bankruptcy Code.

Fortunately, Washington law recognizes the importance of owning an automobile. This is why people who file for bankruptcy have a certain amount of protection when they decide to petition the court. If you are facing a vehicle repossession action, our Bellevue repo lawyers may be able to help.

To better understand these complicated laws, we urge you to contact one of our Bellevue car repossession lawyers for a free consultation. The bottom line is that you’ve got important legal rights, options, and protections when it comes to stopping your vehicle’s repossession.

Do I file a Chapter 7 bankruptcy or Chapter 13? Our Bellevue car repossession lawyers have answers.

For some of our Bellevue bankruptcy clients that are facing a car repo, filing a Chapter 7 bankruptcy petition is clearly their best option. But, if your monthly income is too high, perhaps a Chapter 13 bankruptcy and an affordable monthly payment plan is the best way to keep your car from being repossessed in the future.

Here’s the thing. One of the fundamental principles behind bankruptcy is to help people with substantial financial problems get back on their feet. In many ways it’s like hitting a financial reset button. If you need a car to survive, our King County bankruptcy and vehicle repossession attorneys are ready to help you take the next step.

You have legal rights and our Bellevue car repossession attorneys will ensure they’re protected.

• Your car is likely protected from seizure during a bankruptcy if it’s entirely paid for.
• If you’re currently making payments on your car, you can maintain possession of it by keeping up with your monthly payments
• It may be possible to pay off a current car loan with a loan from a different lender via a process called redemption.
• If you file Chapter 13 bankruptcy, you can include the remainder of the loan as part of your debt consolidation and pay it off over time.

Are you worried about losing your car if you file for bankruptcy? If so, our Bellevue car repossession and bankruptcy lawyers are here to help. Your situation will dictate how your divorce lawyer approaches the situation. If your car is valued at up to $3,500, the “automobile exception” protects it from repossession by creditors. Other exemptions include the “federal wildcard exemption for up to $11,975, and there is another one from the state valued at $3,000. If your car is fully paid for, you can use these exemptions to protect car ownership. If you’re married, the exemptions can also be stacked.

If your car is not paid off you can maintain ownership if you keep up with your monthly payments. If you are filing a Chapter 7 bankruptcy, you may be required to reaffirm the loan, which means the car is not included as part of the bankruptcy. You need to talk to your Bellevue repossession lawyer about this option in detail to make sure that this course of action is in your best overall interests.

Bellevue, Washington and the bankruptcy court.

If you live in Bellevue, you already know it’s a great place to live with endless opportunity to succeed financially. In fact, it’s one of the wealthiest communities in the State of Washington. If you’ve ever considered opening a business or had questions about local government, you should take a few minutes to peruse the city website. 

From Bellevue, you are close to all of the big city action in Seattle, and still just a short drive from some of the most amazing natural areas in the United States. From Puget Sound to Mt. Rainier, there are virtually no limits to the types of terrain available to enjoy. Still, if you spend too much time playing and not enough time at work, you could run into financial trouble. It’s far more likely to encounter financial troubles because of an illness or getting laid off of work. If you can’t recover from this debt, your best option may be filing for bankruptcy. 

Our Bellevue bankruptcy attorneys handle these cases in the United States Bankruptcy Court for the Western District of Washington. If you have questions about this process, check out the link or simply give us a call for a free consultation. Bankruptcy won’t work for everyone, but it’s almost always a far better alternative than trying to climb out of unmanageable debt.

Our King County vehicle repo attorneys discuss ways to prevent car repossession.

In Washington State, you can pay off the remainder of your car loan during bankruptcy in a process called redemption. However, you must make a motion in court to pursue this action, and there could be some dispute about the automobile’s actual value.

If you file for a Chapter 13 bankruptcy, the amount of money you owe on your car can be added to the debt consolidation, which must be paid off in 3 to 5 years. If you’ve owned the vehicle for at least 30 months, you can pay off a portion of the loan that covers its actual value, plus interest, in a process called, “cramming down.” This is highly advantageous for many people and can save you a lot of money.

Contact one of our Washington bankruptcy lawyers today and find out how to keep your car.

If you live in Bellevue, you need a car. Contact one of our Bellevue repossession attorneys today for a FREE consultation, and find out how we can take steps to keep you behind the wheel. Be sure to inquire about the low flat fees and the flexible payment plans we provide.

(425) 953-4061