Two recent clients came to my office wanting to file for bankruptcy because of their mounting credit card bills. When we started to review their credit report I noticed that their vehicle loan was large. I asked them why their car loans were so high and they stated that they traded in vehicles with negative equity into another vehicle. Some have repeated this process more than once. I asked them what their intentions were regarding their vehicles and they both were unaware of the surrender option in bankruptcy.
In either a Chapter 7 or a Chapter 13 bankruptcy in South Florida, a debtor is entitled to surrender a vehicle (or other secured debt), into the bankruptcy. The debtor would then have to turn over the car back to the creditor, but the creditor would not be allowed to seek any additional monies from the debtor.
Surrendering a vehicle in bankruptcy is a great way for a debtor to reduce their future expenses and allow them to begin saving for the future.
If you are thinking of filing for Chapter 7 or Chapter 13 bankruptcy or would just like to speak to an attorney regarding your debt issues, then please contact Shmucher Law, PL at 305-741-5553 or 954-309-5559. We have offices, by appointment only, to see clients in Boca Raton, Fort Lauderdale, Plantation, and Miami Florida.