Owning a car is more than just having a means of transportation, as a vehicle is essential for you to get to work, attend personal errands, and support your family. Considering the important role it plays in your life, you no doubt have concerns about what happens to your car after bankruptcy in California. You might be aware that the bankruptcy court can take certain assets, and living without a car is not an option. Fortunately, you may have access to better options. Protecting your vehicle is possible in many cases.
If you are burdened with the weight of choking debt, you may be looking into bankruptcy options to ease your financial struggles. Depending on how far you have researched, you might already know that your assets are important for both Chapter 7 and Chapter 13 bankruptcy. For many filers, the residence is the most valuable, significant asset in the case. You will certainly want to know what happens to your house after bankruptcy in California, and the outcome varies depending on your circumstances.
Many people have concerns about filing for bankruptcy in California, especially the impact on credit scores that they worry will follow them around for the rest of their lives. These fears may be justified, but it is important to consider them alongside the benefits for your financial future. With Chapter 7, you discharge your debt entirely as long as you qualify. Chapter 13 offers the option to repay debt at a fraction of what you would owe, according to a monthly plan that you can afford. With both types of bankruptcy, you enjoy the automatic stay that stops creditors from attempting to collect your debt.