Chicago, Illinois (PRWEB) April 04, 2014
To assist people in financial distress who are considering Chapter 7 bankruptcy to solve their money problems, Chicago bankruptcy lawyer and financial rescue expert Richard G. Fonfrias, J.D., managing partner of the Fonfrias Law Group, LLC, has added another educational new article to his Chicago law practice’s website (http://www.chicagomoneylawyer.com). The new article, entitled What Happens to Your Car in a Chapter 7 Bankruptcy? answers many of the questions that people want to know, including how a Liquidation Bankruptcy (Chapter 7) will affect their ability to keep their car.
The new article about what happens to a person’s car in a Chapter 7 bankruptcy covers a number of key issues and explains several different scenarios. As is often the case in bankruptcy law, there are no simple answers. What a person can expect to happen with their car in bankruptcy depends on their own unique set of circumstances. For example, if a car is completely paid off with no loans or liens against it, the car’s value becomes part of the estate and it is the trustee’s duty to sell it and distribute the money to creditors. However, bankruptcy law allows a person to shelter a specific portion of their vehicle’s value, so, if the car is valued at less than the exemption amount; the Trustee may let the person keep their car. If the car is worth more than the exemption amount, the car will be sold, and the former car owner will get a check for the exemption amount, with the rest of the car sale proceeds going to creditors.
The bankruptcy article goes on to describe situations where a person might be allowed to keep their car, even if the car has a loan against it. This can be done by reaffirming the obligation with the lender. Redemption is another way a person may be able to keep their car if they still owe money on the vehicle. The article also describes situations where it may be in the car owner’s best interest to surrender their vehicle if they can’t make the payments and have the debt erased in bankruptcy court.
The What Happens to Your Car in a Chapter 7 Bankruptcy article is just the latest in a series of educational articles and guides offered by Richard Fonfrias on his website. The Fonfrias Chicago Money Lawyer site is full of useful information on a diverse range of legal and financial topics, including bankruptcy, foreclosure, tax issues, debt solutions and loan modification. “It is my goal to add as much useful information as I possibly can to the website in order to make it a valuable resource for people in financial trouble. The website already has more than eighty articles on bankruptcy, foreclosure and financial rescue topics alone. These articles are not intended to be used as do-it-yourself guides or as an alternative to obtaining the counsel of a competent bankruptcy lawyer, but it is my hope that people will use the information that they have picked up from the website to work with their lawyer and together find the best solution to their financial problems,” explains Fonfrias.
Richard G. Fonfrias, J.D.
Fonfrias Law Group, LLC
First National Plaza
70 West Madison, Suite 1400
Chicago IL 60602
About Fonfrias Law Group: Chicago Money Lawyer Richard Fonfrias of the Fonfrias Law Group has built a solid reputation helping clients in serious financial trouble to find the right solution to their money problems. The Fonfrias Law Group’s dedicated financial rescue and bankruptcy team offers an extensive range of financial and legal services, including bankruptcy defense, tax defense, debt consolidation, bad credit repair, foreclosure defense, credit card debt management, loan and mortgage refinancing advice. For more information or to arrange a free initial consultation with Richard, please call 312-969-0730 or visit http://www.chicagomoneylawyer.com.