When you file for bankruptcy in Alabama, you may be concerned about losing your car when your assets are taken away by collectors. Fortunately, local bankruptcy laws typically allow you to keep your vehicle if you file for Chapter 7 bankruptcy and are up to date on your payments.
Alternatives to vehicle seizure
You may also have the option of paying off the equity on the vehicle at a discounted rate to ensure that you can continue to own it and have a reliable mode of transportation. In most situations, you can keep any property that is needed to work and maintain your household.
Are you a candidate for bankruptcy?
Filing for bankruptcy may be the best option for your situation if you feel overwhelmed by the debt you’ve acquired and are not capable of making more than the minimum payments each month. You may want to consult a reputable credit counselor and attempt to negotiate your outstanding balances with the lenders.
Bankruptcy is an option if you’ve already attempted to negotiate with lenders. You can also consider it if your liabilities exceed your income and assets. If this is the case, bankruptcy may offer relief and help you to regain your financial standing.
Who can you contact for legal assistance?
If you want to file for bankruptcy, contact an attorney to help you navigate the process and protect your assets. A legal professional may inform you of your rights and help you to avoid common mistakes. They may assist you in finding relief for your burden of debt while determining if Chapter 7 or Chapter 13 is the best option for your situation. It’s often possible to find solutions to save your home and car after filing for bankruptcy.