Can I Give Up My House Or Car In A Missouri Or Illinois Bankruptcy?

People often wonder what will happen to their property in a Missouri or Illinois Chapter 7 bankruptcy

. A St. Louis bankruptcy attorney is prepared to help you make whatever decision you think is best but you do have three choices: reaffirm, redeem or surrender the property. Where do you go from here?

Of course, a qualified and experienced St Louis bankruptcy attorney can help you decide what would be best for your situation but, ultimately, it is your choice. The first option is reaffirm. If you choose to reaffirm, you make the same payments you've been making all along instead of getting rid of the debt. For example, if you decide to reaffirm your car, you will simply continue to make your car payments as you did before. Keep in mind, if you don't make your payments, the lender will still be able to take your property in this scenario.

Many folks pick reaffirmation as a means to keeping their property in a Missouri or Illinois Chapter 7. If enough of your income is freed up by the other debts that eliminated in your bankruptcy, then you may just be able to keep your property without a headache! If, however, you think the payment still may be hard to make, you might want to look at other options.

Another opportunity involves redeeming the property. Redeeming the property allows you to pay only the market value and keep the property. For instance, if your car is worth $5,500 but you owe $7,500 on it, you can pay the lender the market value at $5,500 and keep the property.

This option sounds wonderful considering you can save several thousand dollars but the payment must be in a lump sum, which is a hard way for most people to pay. There are some companies, however, that do redemption loans, which could save you the headache of coming up with the money out of pocket.

You can also choose to surrender, or give up, the property. If you surrender the property, you eliminate the debt by giving it up. While this may not sound like an appealing option, it might be a good idea. If the payments you are currently making are giving you a hard time, surrendering the property means you can be free of the responsiblity of the debt and start over. Your income can finally be yours again.

The decision is yours but it is typically pretty clear what the most responsible and best decision for your budget will be.

by: Jim Brown

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