Chapter 7 Bankruptcy And Car Title Loans
In Chapter 7 bankruptcy, youll surrender your non-exempt assets to the bankruptcy trustee. In California, you can choose between two different sets of exemptions. Remember that exemptions only apply to the equity you hold in an asset and are used to determine whether or not the trustee can sell the asset. They do not affect secured debts.
The trustee will sell your nonexempt assets and pay the proceeds to your unsecured creditors. At the end of the process, your remaining unsecured debt will be discharged. However, a title loan is a secured debt.
Under Chapter 7, you have the option to redeem a secured debt. Thats the only way to keep your car through the bankruptcy. To redeem title loan debt, youll have to pay the market value of the car in one lump sum. For example, say your car is worth $4,000 but you owe $6,000 to the title lending company. You can pay $4,000 in bankruptcy and the rest of the debt will be discharged. However, its difficult for most debtors to put together enough cash to redeem the debt. There are, however, companies that specialize in funding redemptions, and your attorney can discuss these with you.
If you receive your bankruptcy discharge without addressing your title loan debt, the lender will repossess your car as soon as your bankruptcy ends. If they sell it and the proceeds are less than your debt, youll be liable for the deficiency.
Steer Clear Of Predatory Lenders
Like paydays loans, title loans may seem like one of the only ways to get cash when you have credit problems. But even if you’re in a pinch, it’s important to explore all of your options before agreeing to put your car on the line.
It’s still possible to get a traditional personal loan even if you have bad credit. As more alternatives to bank and credit unions continue to enter the marketplace, your options are growing year by year. These alternatives include online lenders and peer-to-peer lending platforms, which often are more accepting of those with lower credit scores and have many advantages over auto title loans.
Instead of relying mainly on your credit report, scores and income information to make a lending decision, lenders may use alternative credit data to help determine your creditworthiness, which could help you qualify for better terms or a lower interest rate.
To avoid relying on predatory loans in the future, start working on your credit today. Along with paying bills on time and keeping your credit card balances low, you can use free credit monitoring to get familiar with what’s in your credit file. Monitoring your report and score can help you identify areas for improvement and start building toward better credit right away.
Equity In Your Vehicle
Equity is the amount of money your vehicle is worth minus any amount you still owe on it. If you own your vehicle outright, its equity is simply the resale value of your vehicle. At LoanMart, we do our own evaluation of your vehicle based on information, including photos, about your vehicle. Depending on how much we think your vehicle is worth as one factor, we will decide if and how much we might be able to lend you.
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What Happens To My Car During Bankruptcy
Filing for bankruptcy is a serious decision that can damage your credit for seven or 10 years, depending on the type of bankruptcy. But if you’re drowning in debt you can’t pay, it can serve as a last resort to help you hit “reset” on your finances.
There are two main types of bankruptcy: Chapter 7, which liquidates some of your assets, and Chapter 13, which focuses on repaying debts. What happens to your car in bankruptcy depends both on the type of bankruptcy you file and how much equity you have in your vehicle.
Can A Person File Bankruptcy On An Fha Loan
You can always file for bankruptcy, even if you have an FHA mortgage loan. There are no special rules regarding bankruptcy and FHA loans. Bankruptcy affects an FHA mortgage loan just as it affects any other type of mortgage loan. Generally, this means that bankruptcy does not effectively discharge your responsibility to repay the mortgage loan.
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Help Yourself And Consider Other Options Before You Think Of Getting A Title Pawn
You can contact your family for assistance, take out another type of loan, or consider getting a second job. HIf you are having an issue with paying back your current title pawn, the best option is for you to contact an attorney who has experience in the area. Morgan & Morgan has an office in Athens, GA to best serve our clients. Contact us today to examine your case and help to develop a plan to get your car back and pay off the loan in a timely manner.
Farming Fishing And Aquaculture Exemptions
- If your primary occupation is farming, personal property used by you to earn income are exempt up to $10,000
- If your primary occupation is fishing, personal property used by you to earn income are exempt up to $10,000
- If your primary occupation is aquaculture, personal property used by you to earn income are exempt up to $10,000
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How We Look At Bankruptcy
A previous bankruptcy or bad credit history may not hurt your chances of qualifying for an auto title loan, since our auto title loans in Dallas and many other places are more heavily based on the value of your vehicle and your ability to repay.
If you have a current bankruptcy proceeding, you may need to get permission from the court to obtain a loan from us.
We will decide if we can lend you money based on your ability to make payments now. With respect to bankruptcy, we look to see if you are in credit counseling, have an active bankruptcy or anything else that might affect your ability to pay a loan.
Weve been able to help people with all kinds of situations in the past that have to do with bankruptcies and we may be able to help you too.
Limits To The Automatic Stay In Pawn Transactions
There are limits to the automatic stay that you should be aware of. Specifically, the automatic stay does not âtollâ or pause your right of redemption period in your pawn contract. It does, however, extend the right of redemption for a 60 day period plus whatever time was left on your loan contract redemption period. For example, if there were 2 days left in your pawn contract for you to pay the remainder of your loan and redeem the pawned property, the automatic stay will grant you 62 days to redeem your property. Keep in mind that the automatic stay cannot last longer than this period of time, even if your bankruptcy petition remains active for years, as typically happens with a Chapter 13 bankruptcy. Note that if your right of redemption period has passed at the time you file for bankruptcy, there is no automatic stay as to your pawned property. All you can do in the bankruptcy is discharge the pawn debt, which means that if you have entered into a title pawn agreement with TitleMax, for example, you may lose your property unless you can repay the full balance of the loan. It is therefore probably wise to contact a bankruptcy lawyer and schedule a free consultation for legal advice regarding your right of redemption for your pawned property if youâre filing for bankruptcy and are concerned about retaining ownership of that pawned property.
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How To Get A Loan After Bankruptcy
Filing for bankruptcy can be devastating to your financial future, especially if you need to take out a loan. While it will provide you with a fresh start, you will be limited on the things that you can do as far as your finances are concerned. If you have recently decided that filing for Chapter 7 bankruptcy is your only way out of debt but now require a short-term loan to help you get back on your feet, you may want to consider getting a car title loan.
Chapter 13 Bankruptcy For Car Title Loans
Our attorneys can take quick action to get you into a Chapter 13 bankruptcy. From the day that you file for bankruptcy, lenders can no longer harass you for payment or repossess your car. If your car has already been repossessed, it may be possible to get back.
In Chapter 13, you pay back part of your debts over time, based on your ability to pay. It gets creditors off your back and gives you financial breathing room. Just as importantly, it lets you keep your vehicle that you need for family and employment reasons. In fact, Chapter 13 can restructure your original car loan to reduce the payments, interest or duration.
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How Much Does It Cost To File Bankruptcy In Utah Or What Are Your Attorneys Fees For Bankruptcy
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What Should You Do
If youre struggling with mortgage debt, you should think carefully about whether you want to keep your home. In some cases, it may be best to surrender it to the bank. If your home is underwater, bankruptcy can protect you from liability for any deficiency after the foreclosure process.
If you want to keep your home, youll need to determine whether youll be able to keep making mortgage payments after bankruptcy. If you have arrearages, Chapter 13 mortgage payments can help you repay them.
The prospect of losing your home is difficult and upsetting. Contact us online or come in for a free consultation with one of our experienced bankruptcy attorneys. Well go over your finances with you and help you determine the best way to deal with your debt.
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What Are The Terms Of A Car Title Loan
Like all situations where the borrower has few or no other options, car title loans tend to carry very high interest rates. Like payday loans and pawn shops, the interest rate is Usury. In other words it is usually the maximum allowed by law. The term of a car title loan is usually 30 days, and the interest rates charged average between 25% to 35% per month. Car title loans are often renewable and depending how they are set up, so like payday loans they can go on as long as you continue to pay.
Is Bankruptcy A Solution For Car Title Loans
Bankruptcy can be an option in some cases. A car title loan is a secured loan, so if youre behind on the loan and you file for Chapter 7 Bankruptcy you wont be able to keep the car. If you file for Chapter 13 Bankruptcy you have to pay back the amount you have fallen behind on over 3 to 5 years. If the title isnt in your name at all, it can complicate things and it will come down to the agreement, timelines, obviously the law, and a number of case specific facts that should be evaluated by an attorney on a case by case basis. In other words, Contact Us to discuss your particular situation to see if bankruptcy is an option to address your car title loan. If you do decide that bankruptcy is the option for you, you may also be able to stop creditor harassment, stop foreclosure, eliminate or significantly reduce , medical bills, and certain taxes.
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How Titlemax Can Help
TitleMax® has been one of the largest and most trusted auto title lending companies in the country since 1998. We now feature more than 1,000 stores across 16 states. We specialize in car title loans and work to provide excellent customer service at affordable rates! At TitleMax®, we understand that life is full of unexpected expenses. Many people cannot qualify for traditional loans and need money fast. Our online approval is fast and easy, so youll get your cash right away. If you have any questions or concerns about our services, you can contact us online, by phone, or by via .
Bankruptcy Exemptions In Nova Scotia
- No limit on clothes for you and your family
- No limit on fuel and food for your family
- Up to $5,000 in household furniture and appliances
- One motor vehicle up to $6,500
- All medical and health aids for you and your family
- Farm equipment, fishing nets, or other tools of your trade up to $7,500
- No limit on grain and seeds or livestock for domestic use by you and your family
For more information on bankruptcy exemptions in Nova Scotia, contact a local a BDO trustee near you.
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Approval Process At Loanmart
Here at LoanMart, we always take our customers current situation in mind when going through the approval process. We know that everyones past does not necessarily reflect their present or their future. We realize that even though you might have had a bankruptcy in the recent or more distant past that shows up on your credit report, you may still be able to repay a loan.
What Are Payday Loans/title Loans
Many Americans are falling into the trap of payday loans. These are short-term loans that have high rates of interest. You are required to pay back the loan before your next payday. Typically, in a payday loan scheme, you will give the loan provider a post-dated check that he will cash. With the high rates of interest on these loans, before soon, you may have thousands of dollars of debt.
A Title Loan is also a quick way for people to get cash. In this type of loan, you get a loan on the title of your car, and when you repay that loan, the title is returned back to you.
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Talk To A Bankruptcy Attorney
Dont continue to labor under debts that you cannot pay because you are afraid of the potential consequences. Talk to a bankruptcy attorney about how bankruptcy may be able to help you. In many cases, your bankruptcy attorney can help you find a plan that will protect your assets while also giving you debt relief. You may be able to save your home from foreclosure and your vehicle from repossession. You will most certainly be able to gain control of your finances again so that you can start moving forward.
If you are struggling with debt, call the Rodney K. Okano Law Office to learn more about your options with bankruptcy and how they may be able to help you. We seek to get you the maximum debt relief possible through bankruptcy protection, while also finding ways to preserve your assets, such as your home and vehicle. Well help you understand all your options so that you can make the best choice to meet your goals. today to schedule a consultation with an experienced bankruptcy attorney.
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Other Options Besides Bankruptcy
There are many options other than bankruptcy available for you to explore. In many cases, you might be able to consolidate your debt through a home equity loan or second mortgage. If you have any chance to pay down your debt without taking the drastic step toward bankruptcy, you should do it. Consolidation might not work for everyone, but many people find their debts are much more manageable combined into a smaller payment with a lower interest rate. Debt settlement is a similar option that requires you to work with your creditors to negotiate a lower payment, interest rate, or payment plan. In some cases, your current payments might be waived in exchange for larger payments at a later date. Sometimes, creditors will allow you to catch up on current payments by paying the older payments in the future.
Selling your property is another way to avoid bankruptcy. Since filing Chapter 7 involves liquidating your assets, you could completely avoid it by selling any extra valuables on your own. A second car or collection of antiques could be a great source of extra income. Many people turn to eBay, Craigslist, or pawn shops to sell their belongings. You could also refinance your mortgage with a lower interest rate: This often results in extra income, which can be put toward paying down your debt.
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