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Ridethrough in Bankruptcy Discussed in Article and in Video; Automobile Reaffirmations in Arizona Bankruptcy

By Joseph McDaniel, Esq.

Automobiles use up more time in a Consumer Chapter 7 Bankruptcy than they should.


Prior to the Barf Act of 2005, a debtor could use "ride-through" to hold onto a car that did not exceed the exemption limits (and could pay the bankruptcy trustee a lump sum to settle with the trustee if it did exceed the exemption limits).

Remember, in a Consumer Chapter 7, after you pass the swinging pendulum blades of the Mean Mean Means Test, you still have to decide what to do with the car.

You will have filed a statement of intentions, and you may or may not have indicated that you want to reaffirm on your car.

Now, the law is one thing, and local practice is another.

To see how it often gets handled in Bankruptcy Court in Arizona, take a look at my educational bankruptcy video, "Unexpected Compassion". 

And bear in mind that the treatment you get may be like that, or it may be different, because there are fewer guarantees in Bankruptcy than before the 2005 Amendments.

Think "none".


  

Full post as published by Arizona Bankruptcy Attorney Blog on January 23, 2011 (boomark / email).