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Upper Darby Bankruptcy Lawyer

Upper Darby bankruptcy lawyer Michael T. Malarick has been practicing law for over 27 years in the state of Pennsylvania and New Jersey.  As an Upper Darby bankruptcy attorney, Michael Malarick has handled many chapter 13 bankruptcies and chapter 7 bankruptcies for people living in Upper Darby, PA.  If you are in tough financial times and would like to file for bankruptcy in Upper Darby, or would like a free consultation from a bankruptcy lawyer in Upper Darby, call today for a free bankruptcy consultation. Our experienced bankruptcy lawyer can help you through your legal bankruptcy needs.

Upper Darby Bankruptcy Attorney – What Will Happen To My Car In Bankruptcy?

If you live in Upper Darby, PA, or any township in Delaware County, PA, you are rightfully concerned as to what will happen to your car if you file for bankruptcy protection. In Upper Darby, PA, and throughout Delaware County, PA, a car is, essentially, a necessity.

Generally speaking, you decide what will happen to your car or your car loan when you file for bankruptcy. First, if you own your car free of any loans, the Federal exemption for an automobile is $3,775.00. If your automobile’s fair market value is $3,775.00 or less, you can keep your car.  This amount will cover most older model motor vehicles.

If you are behind with your payments on a car loan or car lease, your first decision is whether to file a Chapter 7 (liquidation) or Chapter 13 (re-organization) bankruptcy petition.  Call our chapter 7 Upper Darby bankruptcy lawyer today to learn more about your chapter 7 bankruptcy options. If you file a Chapter 7 petition, you must then decide whether to: 1. reaffirm the car loan or lease; 2. redeem the car; or 3. surrender the car.

When you reaffirm your car loan or lease, you essentially agree to continue making the monthly car loan or lease payments and keep the car. The danger here is that if you cannot make the future monthly payments, the bankruptcy laws will likely not protect you from the repo-man.

If you decide to redeem the car, you agree to pay the car’s current fair market value in a single lump sum.  Admittingly, this option is difficult for most people facing bankruptcy but you may well be paying substantially less than the full remaining loan or lease amount.

Finally, you may decide to surrender the car, i.e., return the car voluntarily to the finance company.  Here you would not be responsible for the remaining monthly car loan payments.  If you lease the car, you would not be responsible for the remaining monthly lease payments or any subsequent deficiency amount tendered by the leasing company.

If you decide to file a Chapter 13 petition, you can choose to include any past due car loan or lease payments in your repayment plan.  Call out chapter 13 Upper Darby bankruptcy attorney today to learn more about your chapter 13 bankruptcy options. Here, you can keep your car and bring your loan or lease payments current through your 3 to 5 year repayment plan.

Contact Our Upper Darby Bankruptcy Lawyer

Contact our Upper Darby bankruptcy lawyer Michael T. Malarick today if you are considering filing a bankruptcy petition and are worried about what will happen to your car – whether your car is owned, financed, or leased.

Related Areas of Practice

  1. Upper Darby Divorce Lawyer
  2. Upper Darby Car Accident Lawyer
  3. Upper Darby Slip and Fall Lawyer
  4. Upper Darby Workers Comp Lawyer
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    Michael T. Malarick, Esquire, has over 25 years of experience practicing law as a licensed attorney in PA and NJ. The Delaware County law firm handles Civil Law, Criminal Law, Disability Law, and Family Law cases. The Law Office of Michael T. Malarick serves clients in and around Delaware County, Boothwyn, Exton, Marcus Hook, Coatesville, Philadelphia, Aston, Media, Drexel Hill, Chadds Ford, Upper Darby, Swarthmore, Havertown, West Chester, Upper Chichester, Downingtown, Chester County, Bucks County, Montgomery County, and Southern New Jersey.
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    Michael T. Malarick, Esq., PC
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