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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have a lot of debts that I incurred after a long period of

Resolved Question:

I have a lot of debts that I incurred after a long period of unemployment. Mostly grad school loans and credit card debt. I owe about 10,000 to JP Morgan Chase. I tried to settle it , but was unable to because I work as a contractor and found out my job was ending. They sued me and got a judgement. I have been trying to put money aside to hopefully settle it soon.

My question is, my car will be paid off this month, and I am wondering if it is at risk. I need my car to get to work. I am wondering if I should keep it or get another one and finance some of it. It is worth at least 9,000.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 4 years ago.

WebLaw :

*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

WebLaw :

Welcome to JustAnswer,

My name isXXXXX shall do whatever I possibly can to provide you with helpful information about the law. Please keep in mind that, although I am an attorney, I am prohibited from giving customers of the site legal advice or forming an attorney-client relationship on this forum.
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WebLaw :

Can you please tell me what State you reside in

Customer:

Pennsylvania

WebLaw :

checking

WebLaw :

Unfortunately Pennsylvania statute does not protect the vehicle from creditor claims. Therefore your vehicle is at risk

Customer:

What is the best course of action in that case?

Customer:

I have not made the final payment yet, but it is due.

WebLaw :

I cannot give you legal advice – just legal information. However a person in a situation similar to that you described may want to consider a chapter 7 bankruptcy.

WebLaw :

By filing a chapter 7 bankruptcy you would be able to choose the federal bankruptcy exemptions and protect $3450 of equity in your vehicle

WebLaw :

A chapter 7 bankruptcy would also discharge/erase the credit card debt

WebLaw :

Have I answered your question?

Customer:

I was told a bankruptcy was not a good option because of my student loan debt

WebLaw :

Student loan debt would typically not be discharged. However credit card debt would be discharged and it would protect $3450 of equity in your vehicle

Customer:

ok, thanks.

WebLaw :

It has been my pleasure to provide you with legal information.
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WebLaw :

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