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It is a bold step to take, but sometimes filing for bankruptcy is the best move a person can make. Doing so can bring one out of financial ruin and put them on the road to recovery. A frequent question among those filing for bankruptcy concerns their vehicle. Can a car be kept if a person files for bankruptcy? The answer to this issue depends on many factors.
Certain states will require a vehicle owner to pay off the balance of a car in order to keep it. Florida is one such state. In other states, other rules and regulations determine whether or not you can keep a vehicle if you file bankruptcy.
If you have an existing loan on your vehicle, your title will have a lien on it. The lien holder will have the right to take possession of the vehicle if you do not make payments. Each state will have different rules, but for the most part, arrangements will need to be made with your lender to continue making the payments. In many cases, those who continue making their regular payments can keep their vehicles even when they file for bankruptcy. The same holds true for a car title loan. Embassy Loans has provided thousands of car title loans to customers in need of emergency money. The company places a lien on the title to the vehicle being used as collateral. Again, if you are a Florida borrower, you will need to pay off the balance of the title loan to keep the car in a bankruptcy situation.
Often, keeping your vehicle may depend on its value. If your car is several years old and has thousands of miles on it, it may not be worth as much as a newer one. A bankruptcy judge can order you to sell your vehicle if it is deemed necessary to pay off your debts. If you have a relatively new car in good shape that is worth $25,000 for example, you may be ordered to sell it off with a view to paying off other debts.
Typically, your car or truck would be appraised by someone who is a professional, and the vehicle would then be sold. Of course, it is best to consult with an experienced bankruptcy attorney to find out exactly what you must do if you do choose to file.
An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan.
An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay.
The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.
Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.
Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.