The simple truth is that most folks rely on a car to get to work and to keep their lives in order.  So how do you do that after Provo bankruptcy?

People who find themselves considering bankruptcy have enough troubles as it is.  Perhaps you’ve lost your job, suffered a costly injury, or even a divorce.  Whatever your story is, times are hard and you need help.  With Provo bankruptcy, you can get relief from the debts that are holding you down.  But financial recovery after bankruptcy is just as important.

I cannot stress this enough.  To get their financial affairs in order after filing Provo bankruptcy, debtors need to hold a steady job and use the income to build checking and savings accounts as well as pay all their bills on time.  For those who are out of a job (alarmingly common these days) finding employment is the biggest and hardest step to accomplish.  And the task only becomes more difficult for those without their own transportation.

Retaining a car after Provo bankruptcy then becomes a big issue.  Happily, many debtors successfully keep their automobiles after filing for bankruptcy and the attorneys at Utah County Fresh Start are eager to help you do the same.

Still, as a debtor filing for bankruptcy, it pays to know what your options are when it comes to dealing with a car in Provo bankruptcy court.  If you owe money on your car and you are filing Chapter 7 bankruptcy, you have 3 options:

• Redeem: This is a single payment you make to your creditor for the fair market value of your car. This makes life easier down the road because you no longer have any car payments to worry about. However, many debtors do not have enough cash on hand to make this a viable option.
• Reaffirm: This is an agreement between the debtor and the creditor to continue to honor the original contract. You keep your car and continue to make payments on it according to a payment schedule you and your creditor agree on.
• Surrender: Finally, if neither of the options above meet your needs, you can surrender your car to your creditor and have all the debt you own on it discharged. This is an appealing choice for debtors who owe more money on a car than it’s actually worth.

If you are filing for Chapter 13 bankruptcy, the Provo bankruptcy court will handle your car in one of two ways depending on how recently you purchased it:

• For Recent Purchases:  If you bought your car within 910 days (about two and a half years) prior to filing your bankruptcy petition, you are required to pay the full value of your loan at  a reduced interest rate.
• For Old Purchases:  If you purchased your car before the 910-day mark, you are only required to pay the fair market value of your car.  The fair market value is the price you could sell your car for today.

At Utah County Fresh Start, we understand that you need relief from your debt.  We also know you are hoping for a financially secure future after Provo bankruptcy.  Having a car will help that happen. That’s why we fight for our clients to keep their assets after Provo bankruptcy, their cars especially. Fill out our Free Evaluation now to see how we can help you loose your debt and keep your car.

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