How to Keep Your Car During Bankruptcy

When undergoing bankruptcy, many debtors are fearful their vehicles will be taken away from them. However, there are ways to keep your car as transportation to work or school. A helpful Morris County bankruptcy lawyer will be able to give you a full explanation how this can be achieved.

Basic Steps to Keeping Your Car

There are key steps a bankruptcy filer can take to keep his or her car and other possessions such as a house. A qualified Morris County bankruptcy attorney can help you establish your own personal set of steps. Below you will find a few steps to maintain a good standing in keeping your car.

  • Gain/Keep Employment – After filing for bankruptcy, it is not the right time to give up looking for employment or quit your present job. Being employed is the first step in recovering from a financial setback.
  • Stay Current on Bills – Make sure that you do not owe any outstanding debt to any creditor after filing for bankruptcy.
  • Maintain a Bank Account – Despite filing for bankruptcy, you are allowed to open a checking or savings account.
  • Start Rebuilding Your Credit – Although it is difficult, bankruptcy filers can still obtain credit cards. However, this step must be used with caution. It is meant to rebuild your credit and not be used for frivolous purchases. A Morris County bankruptcy lawyer can assist in enrolling you in personal finance classes.

What to Do to Keep Your Car

Most bankruptcy judges understand that a vehicle is needed to maintain employment. For this reason, every effort is made to allow a bankruptcy filer to keep ownership of his vehicle provided that certain requirements are met. A Morris County bankruptcy lawyer can assist you in filing the correct papers to keep your car. Below are the steps to take when you want to keep your car.

  • Sign a Reaffirmation Agreement This allows the debtor to continue making payments on the vehicle and keep the vehicle from being discharged. A Morris County bankruptcy lawyer will be able to supply this reaffirmation agreement to you.
  • File the Reaffirmation Agreement – A qualified Morris County bankruptcy attorney will ensure that these papers are filed and can provide a copy to you.

Let’s face it – a vehicle is needed to keep up with today’s high-paced living. However, it is important to consult with a knowledgeable Morris County bankruptcy attorney who can assist you in keeping your car during bankruptcy. By understanding how each chapter is designed to help you recover from financial setbacks, it can help you make a comfortable transition for you and your family. A Morris County bankruptcy lawyer can walk you step-by-step through the process of keeping your car during bankruptcy.



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