Many people worry about losing all of their possessions when they file for bankruptcy, but that’s rarely the case. Exemption laws may allow you to keep your home, automobile and other assets, all depending on the state you live in. If you are able to keep something like your car through a bankruptcy, does that mean you should? Below we will discuss different reasons why you should keep your car after filing for bankruptcy.
1. You’ll Be Able to Use the Car
This may seem obvious, but the fact that you are able to keep your car after a bankruptcy is a major win. Not everyone will get to keep their car and it is essential if you need to get to work or drop off your children at school. After a bankruptcy, it is much more difficult to purchase a car, and that’s something to take into consideration.
2. It Can Help Rebuild Your Credit
Keeping a car that still has payments can be beneficial for you, especially after a bankruptcy. Since your credit score will take a hard hit, staying current on your car payments will slowly help rebuild your credit. It is just one way to help your credit without having to apply for a secured loan or credit card.
3. It Can Be Used for Quick Cash in the Future
If you own your car outright, you can get quick cash for it in case of an emergency. Do research to figure out how much your car is worth in its present condition, and then sell it. It is preferable to sell it on your own as opposed to going through a dealership, as they will usually pay much less.Overall, keeping your car after a bankruptcy is a great idea if you can afford the payments. To learn more about your options after filing for bankruptcy, talk to one of our Northbrook bankruptcy lawyers. Contact us today!