I'm thinking of filing Bankruptcy 7 later next month. I have try to keep up with the payments on my credit cards but I don't enough funds to keep the payments. I have two young children under the age of five. All the accounts are under my name and my husband is unemployed. I live in NC and I'm thinking of stop paying my car before going into bankruptcy. I'm behind by one month on my car payment right now. Would this affect me going into bankruptcy or should I call the company to come and pick it up the car?
State/Country relating to question: North Carolina
I have talk to the credit companies and gave me a payment plan that I'm unable to keep. I have stop paying the CC companies at all.
you can file the bankruptcy now and the car would be given to the bank after teh bankruptcy, this option is better, as you would have use of the car for a few months more before a repossession. Also, their is a $3500 motor vehicle exemption in NC so if the current book value is less you can keep the car. Plus you may be able to state it is part of the tools of trade exemption which is another $2000
I owe 15K on the car and the car value right now is half. Can I just tell the lawyer I don't want to keep the car?
yes, then the court will give the car to the bank, you would call them to pick up the car, it is done many times.
10 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Thank you so much!!!!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).