Bankruptcy Information

Matthew Foley
Esq. & MBA
Contact a Friendly Attorney
We are affordable, exceptionally knowledgeable, and nice! You’ll love our office.
Call Homero: (520) 795-5600
Bankruptcy and Can I Keep My Car
Helping You to Keep Your Car in an Arizona Bankruptcy
When our clients are considering bankruptcy, one of the first questions they ask is whether they can keep their car in a bankruptcy proceeding. Although each case is different, it is important to know that most people can retain their vehicles during bankruptcy. In Arizona, you are entitled to keep $6,000 in equity for your vehicle. If you are physically disabled, you are allowed to keep $12,000 in equity.
Bankruptcy Can Save Your Vehicle
Bankruptcy provides some interesting options for vehicle owners. Debtors can legally surrender a vehicle, pay the vehicle off at fair market value, negotiate or force a lender to reduce the interest rate, and through a payment plan, bring a delinquent payment current. The mere filing of a bankruptcy temporarily halts repossession efforts and can force a lender to release a vehicle that was recently picked up.
Decisions regarding keeping your vehicle, surrendering your vehicle, replacement vehicle options, etc., should be discussed with an attorney. The options are specific to each scenario and not something that can be explored via Internet research. In addition to keeping or surrendering a vehicle, additional research and legal experience goes into whether to reaffirm a vehicle debt in a Chapter 7 proceeding.