When you file for bankruptcy you need to list all of your debts and all of your assets. Your debts will include mortgages, car notes, credit cards, medical bills, etc. A question that I routinely get is whether or not a debtor can include debt from a repossessed car in their bankruptcy petition.
The answer is YES – a debtor should include any debt he or she owes on a repossessed car in their bankruptcy. Once a car has been repossessed the creditor will likely sell that car at auction and then come after the debtor for any difference they owe. At times this could be a fairly large number and the car creditors tend to sue fairly fast in an attempt to collect their debts.
If you are thinking of filing for bankruptcy in Florida and would like to speak with a bankruptcy attorney regarding your bankruptcy options then please call Shmucher Law, PL at 305.741.5553 or 954.309.5559. Shmucher Law, PL offers free consultations in any of our bankruptcy office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.