Filing for chapter 7 bankruptcy is a major decision that will affect the rest of your life. While this decision shouldn’t be taken lightly, filing for bankruptcy can help you get out of debt that you have been trapped in. There are a lot of specific details that are outlined by your bankruptcy. Your attorney and other parties assisting can help explain what is happening. You will likely have many questions about the process. Since you have to liquidate your assets in order to pay off your debt, you probably are wondering if you will be able to retain ownership of your vehicle. Without it, your life can be impacted to a great degree. Let’s take a closer look.

Liquidation of Assets

Filing for chapter 7 bankruptcy does not require you to turn over your home or your vehicle. The only stipulation is, you must be current on your vehicle payments. If you are behind, you could still lose your vehicle. The same goes for your home. The reason for this is, most lenders assume that people filing for bankruptcy aren’t going to own incredibly expensive mansions and high-end vehicles. The money they would recoup from these items aren’t worth the hassle of taking them from you. You’ll need to keep paying for your vehicle until the lien is released to you. Your loan agreement is not affected by filing for bankruptcy. If you suspect you will have trouble making your payments moving forward, this is something that should be discussed with your lender. In order to eliminate all of your current debt by way of chapter 7 bankruptcy, certain requirements and stipulations must be met. This will allow banks and debt collectors to fulfill the debt that you owe. It is understood that your vehicle is something that you will need in order to comply with all of your court dates and appointments with your chapter 7 bankruptcy lawyer in Pittsburgh, PA. In order to get back on your feet from a financial standpoint, you will be able to retain your vehicle.