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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Cars & Bankruptcy

Many people are afraid of losing their cars in a chapter 7 bankruptcy when in reality it is rare for someone to actually lose their car. The first big factor that weighs in regards to your car, is the equity that the car holds. We are able to protect a certain amount of equity in a car using exemptions that best fit your situation. Most of the time, if there is a loan on the car, there is not much equity at all. If there happens to be some equity in the car that we cannot cover with exemptions, most of the time the bankruptcy Trustee will allow you to “buy-back” the equity by making payments to the Trustee.

Secured Debt

A car loan is considered a secured debt as it is a debt that backed or secured by the physical vehicle. However, if you want to get rid of the car and stop making payments on it, the car can be surrendered in the bankruptcy and you will not owe anything more to the secured creditor. This is because the contractual obligation of the car loan is discharged in the bankruptcy and the only thing keeping the loan is the car itself. If you would like to keep the car, we simply let the court know that you intend to continue to make payments to the secured creditor according to your prior agreement. This is known as the retain and pay option. 

Retain and Pay Option

Under the retain and pay option, your contractual obligation is still discharged. While this option means that the car loan will no longer be reported on your credit report, it is often the best financial decision. The secured creditor will let you keep the car as long as each monthly payment is made but allows you the freedom to get rid of the car at any time without owing anything else. If you decide to let the car go, the secured creditor would simply get the car back and you would not be required to pay. Secured creditors will often try and push for a reaffirmation agreement, which contractually binds you to the car loan (as if the bankruptcy never affected it.) Reaffirmation agreements are often not approved by the court and most creditors accept the retain and pay option. It is always best to speak with your Stockton bankruptcy attorney to find out what your options are for your specific case.

 

For more information, contact your Stockton bankruptcy attorney at 209-952-0355.

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