Keeping a Car While Filing for Chapter 7 Bankruptcy Rancho
The majority of debts are dismissed in a Chapter 7 Bankruptcy Rancho petition. Most customers, however, are concerned that they may lose everything, even personal belongings, but this is not the case.
Although a Trustee may require a debtor to surrender non-exempt property in order to utilize the revenues to pay unsecured creditors, there are a number of exemption rules that allow a debtor to protect some assets in bankruptcy, one of which is motor vehicles.
Now, whether you may keep your car depends on a number of factors, including whether the equity is tax-deductible and/or if you are now behind on your payments.
Typically, the debtor will attempt to reaffirm the vehicle’s loan. A reaffirmation agreement is used to do this.
The reaffirmation agreement, the contract between the debtor and the car loan/lease creditor, allows the debtor to maintain the vehicle under the same terms as the first promissory note signed at the time when the debtor first bought the vehicle.
In most circumstances, the reaffirmation agreement will need to be approved by the bankruptcy court. The conditions of the reaffirmation agreement are approved depending on whether they are in the debtor’s best interest.
Their income, debt, and the current worth of the car will all be taken into account by the court. If the debtor is represented by an attorney, the attorney might certify that engaging in the reaffirmation agreement is in the best interests of the debtor.
Most auto loan lenders do not want a debtor to relinquish their automobiles and/or cancel their responsibilities to repay the amount. If a debtor is unable to commit to the current vehicle payment level, surrendering the vehicle to the creditor during the bankruptcy process may be the best alternative.
When you have a new baby, there are a few things you should think about in terms of estate planning;
Families go through a unique and wonderful period when they have a new baby. With that exhilaration comes a new feeling of duty, as well as the stress that comes with it.
Now that you are in charge of another life, it is important to prepare for the future in case of unanticipated occurrences. When you’re expecting a new baby, these are some of the most important estate planning duties to think about.
Revocable Living Trust: A revocable living trust is a terrific tool for parents who want to leave their new infant an inheritance without having to deal with the courts. The Revocable Living Trust specifies who will receive property after the trust creator dies, as well as what age is acceptable for your kid to inherit.
If you’ve already created a Revocable Living Trust and are expecting a child, you may make changes to it at any point during your life, making it a flexible and adaptable instrument for planning for your kid’s future.
Potential Guardians: If something happens to you, who will look after your new baby? If you do not name a guardian, the court will appoint one for you, which may or may not be your first choice. Determine who is most suited to care for your kid and ensure that person is capable of doing so. If this is your second or third kid, talk to your possible guardians about it again and make sure they’re ready.
If not, you might want to go through your guardianship documents again.
When you are married, life insurance is a nice idea, but when you have a kid, it is virtually a requirement. Life insurance products provide you the assurance that if something unforeseen happens to you, your family will be financially secure. Check the amounts of life insurance coverage you have and make sure your Revocable Living Trust is designated as the beneficiary.
Powers of Attorney and a Living Will are both in need of updating. When you have a new baby, it’s a good idea to go over all of your estate planning paperwork again to make sure they’re up to date and don’t require any changes. It’s time to form or amend your Revocable Living Trust and Health Care Powers of Attorney now that the new baby is here.
Now is the moment to make sure your new infant is taken care of and safeguarded in your will.
Beneficiaries for Retirement Accounts: Make careful to identify beneficiaries for retirement accounts, or update beneficiaries as life circumstances change, such as the birth of a child. Check your retirement accounts to see if your spouse, a trust, or even your children are named as beneficiaries.
Speaking with a skilled Estate Planning Attorney Rancho will help relieve any concerns or questions you may have about your new baby’s preparation and your estate planning.