Can I Get Rid of a Vehicle By Filing Bankruptcy?

Sometimes you just don’t want a vehicle. It may be worth far less than you owe, or it may be a junk that costs too much to repair. So the question is, how do you get rid of it and get something else?

Article written by Attorney Peter Francis Geraci. Read more of his posts at https://www.infotapes.com/Articles!

Can I get rid of a vehicle by filing bankruptcy?

Sometimes you just don’t want a vehicle. It may be worth far less than you owe, or it may be a junk that costs too much to repair. So the question is, how do you get rid of it and get something else? You’re probably not going to just get rid of the vehicle and walk or take the bus. So there are a variety of situations, and you need good legal advice before you make a false move.

Title loans Do you have an old vehicle with a title loan? If you do, the title loan company has a lien on the title. They will want you to pay them before they release the title. If the vehicle doesn’t run, or has been in an accident, you can’t junk it unless you get the title. Title loan companies seldom will take a vehicle back, rarely even repossess vehicles, because they don’t loan you enough money to make it worthwhile. If you file a bankruptcy, we can provide that you surrender the vehicle, then file a procedure called a motion to exempt and redeem. The court values the vehicle, and all you have to do is pay the value of the vehicle to the title company in which they are required to give you the title. This works very well when you have a junker is only worth $100 salvage value.

Under water Second situation that is very common is that you have a vehicle where you have a loan on it, in the loan payoff is much more than the vehicle is worth, and you don’t want it. Let’s say you bought a used car, and it’s now worth $8000. But you have 40 payments of $350 left to pay, or $14,000, the payoff and that depending upon how long you’ve financed it for, might be as much is $11,000 or $12,000. So if you wanted to give the vehicle back to the finance company, they would sell it at auction, probably $4000, and soak you with the auction costs, if you credit for the $4000 sales price, and you’d end up owing 8000 on the repossessed vehicle. Chapter 7 filing can eliminate that $8000 deficiency.

So Chapter 7 works very well when you owe a lot more than the vehicle is worth. If you want the over financed vehicle in a chapter 7, sometimes, we can make a deal, and a reaffirmation. So you can either surrender a vehicle that’s over financed and eliminate the deficiency, or possibly we can negotiate a better deal in bankruptcy, but you have to be willing, under Chapter 7 to surrender it if they don’t give you a better deal. There is another option called 722 redemption, similar to the junker, but if the value of the vehicle is $8000, you have to come up with the full value of the vehicle, or finance it, and if you do not come up with the $8000 722 redemption, you probably be financing it at 30% interest which is a terrible deal and you’d be right back where you started.

Chapter 13 The third situation involves keeping the vehicle, and filing chapter 13 to pay what the vehicle is worth, if the vehicle is over two and half years old, and even if it’s not 2 ½ years old to pay it at the prime rate +2%. Now if that sounds complicated, it is. One problem that we are running into is people are financing vehicles for 72 or 84 months, and then coming in to file a chapter 13, which can only last 60 months. They may even have a 0% interest rate. So if you have a long way to pay on a vehicle, and you’ve already got 0% interest, chapter 13 doesn’t help you. Depending upon your income, it may be wise you can qualify for chapter 7, to get rid of this monster and get a reasonably priced vehicle with a low payment.

There’s a lot more to vehicles in bankruptcy. Geraci law lawyers have filed over 100,000 bankruptcy cases, many of which involve cars, both chapter 7 and chapter 13. If your only debt is a car, you should not be doing a bankruptcy. But if your problem is greater than just the car payment, let’s look at what filing a Chapter 7 or Chapter 13 can do about your whole picture, and where the vehicle fits in.

That’s why you need an experienced Geraci law bankruptcy lawyer to figure all this stuff out.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

PFG at Festival of Lights!

PFG at Chicago’s Festival of Lights!

Peter Francis Geraci celebrated on Chicago’s famous Michigan Avenue for the Festival of Lights Parade. See photos below!

Michig Light

Mich Lights

Need help this holiday season? Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 20,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Geraci Law – Chapter 13 Saves Medical Malpractice Case For Family

Geraci Law is the Best in the Business! This client came to Geraci Law for help with credit card debt after the death of his wife.  Luckily for him, Geraci Law lawyers are skilled in both bankruptcy and injury law.  You can’t imagine how many injury cases are lost because most lawyers have no clue!Med Malpractice gavel

Geraci Law lawyers immediately recognized that his wife’s death, after routine surgery, was not routine.  Geraci Law founding attorney Peter Francis Geraci met with him the next day.

We filed a lawsuit against the hospital and doctors, and a Chapter 13 debt repayment plan to repay the creditors without interest, and to protect his right to proceed with the medical malpractice case.  Proceeding under Chapter 7 would have resulted in the creditors being able to control settlement of the claim of his, and his children, for the death of their wife and mother.

Within a year, the hospital admitted negligence and offered to pay the family $5 million. Here is his review:

“I could not be happier to have been steered, or led to PFG, the no stress environment allowed for CH 13, to eliminate an insurmountable headache of debt, plus providing all the information I needed to move forward as I was hoping for. I would not exclude the staff at the law office; Megan, Mark, Jonathan, provided the best customer service that I have ever dealt with. Very professional, courteous, and took every bit of time I needed to ensure that I was well informed of the task at hand and the laws or legal requirements. When I titled my review as “The Best in the Business”, that is the only way to describe this team of professionals. I could not have asked for any better service, customer support, than I received. A thousand thank yous are definitely in order. For the entire team at PFG, thank you for everything that you do, have done. I have worked in many different areas, with many different organizations, and I can say, Hands Down that I have only been provided the truth, never any promises, I have only been guided in the right direction. Of course that is what I expected, a truthful, honest and professional business at PFG, Outstanding Job.”

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 20,000 5-star reviews since November 2016!  Read more at www.bankruptcybookbypeterfrancisgeraci.com  

Peter Francis Geraci Law 5 Star Reviews

5starreviewsDecember 16, 2016: “I would like to first say that calling Geraci Law was one of the hardest decision I ever had to make. I was able to keep a float but knew my ship was sinking fast. I meet with Rodney at the Merrillville office and right from the beginning he made me feel comfortable. He helped me weight out my options with no pressure. Went over everything that I needed to know. I also had the priviledge of meeting Livita who will be with me when I go to court. She also made me feel very comfortable and answered some questions i had also. I still feel very nervous about this, however i know they will be by my side all the way. This is nothing that I am proud of, however it is something I had to do for some time of peace of mind.”

December 15, 2016:  “Very satisfied with the way the staff treated me and the professionalism they show. I would recommend anyone who needs help with bankruptcy to contact the Crystal Lake IL office.”

December 3, 2016: “Big thank you to everyone at Geraci Law, Maria, Liz, David. I would recommend Geraci to my friends and family!!”

See More Geraci Law Reviews at: https://www.bbb.org/chicago/business-reviews/attorneys-and-lawyers/peter-francis-geraci-law-llc-in-chicago-il-36000434

https://www.bbb.org/wisconsin/business-reviews/attorneys-and-lawyers-bankruptcy-and-taxes/peter-francis-geraci-in-milwaukee-wi-4019438

https://www.bbb.org/indy/business-reviews/attorneys-and-lawyers-bankruptcy/geraci-law-llc-in-indianapolis-in-12000570