What Happens To My Car And Possessions In Ohio Bankruptcy?
There is a lot of fear and confusion around bankruptcy law and what it really means for your assets. Many people worry about losing everything, especially their car. You might wonder: Will I lose my car if I file for bankruptcy? The truth is, bankruptcy is meant to help debtors get a fresh start, not leave them with nothing.
At Robert L. Caplan Attorney at Law, you get help from a lawyer with over 30 years of experience serving the people of Ohio. Mr. Caplan founded his Columbus law firm in 1994 and handles every aspect of your case himself. He is direct, honest and committed to explaining what happens to your assets when it comes to bankruptcy law.
Bankruptcy, Your Car And You
Many people believe that filing for Chapter 7 means losing their car. This is not always true. In Ohio, bankruptcy law allows for a motor vehicle exemption. This means you can keep up to $4,450 in equity in your car if you file as an individual. If you file jointly with a spouse, the exemption doubles to $8,900. If your car’s equity is below these limits, you usually keep your vehicle.
If you still owe money on your car, you have a few important options:
- Redemption: You pay your lender a lump sum equal to the current value of the car. If you do this, you own the car outright and any remaining loan balance is treated as discharged debt.
- Reaffirm the loan: You and your secured creditor agree to keep the original contract in place. By keeping up with your payments, you keep your car.
- Create a repayment plan: Sometimes, debtors can also work out a repayment plan with the lender, especially if they are behind on payments. Lenders are often open to discussing new terms, so you can catch up and avoid repossession.
Each case is different, so having a skilled lawyer by your side can help you understand the right path to take. Get clear answers from a Columbus bankruptcy attorney who is on your side.
What Assets Can You Keep In Chapter 7?
You may also wonder what other assets you can keep after a bankruptcy discharge. Ohio bankruptcy law provides exemptions for many common items. You can usually keep:
- Household goods and furniture within certain value limits
- Clothing and personal items
- Most retirement accounts
- Some jewelry
- Tools of your trade, for example, construction items
These exemptions help protect your basic needs while dealing with unsecured debt and discharged debts. Bankruptcy court aims to give you a fresh start, not take away the essentials you need to rebuild.
Protect What Matters Most With A Columbus Bankruptcy Attorney
If you worry about losing your car or other property, you do not have to face these fears alone. Robert L. Caplan can help you understand your rights and make wise choices. Call 614-252-2026 or send him an email to schedule a free consultation today.
Robert L. Caplan is a debt relief agent. He helps people file for bankruptcy relief under the Bankruptcy Code.