My husband used his truck as collateral to secure the start-up loan of our business. When we file, does anyone know how we can keep the truck? I am estimating the truck is worth about $24,000. The truck was paid in full when purchased. Thanks to any help you can give.
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In which state do you reside?
Do you plan to file a Ch 7 or a Ch 13? Are you filing a personal BK?
Have you checked your exemptions yet for your state?Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way.. -
To keep the truck, you have to keep making the payments, it is that simple.
You might be able to do a redemption (chap 7), or cram down (chap 13) to reduce the overall liability depending on the value of the vehicle and how much is owed.
But if he used the truck as collateral, he must keep making the payments.Comment
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If we file, it will be chapter 7. The vehicle has been paid in full but was used as collateral to secure the SBA loan to start the business. Thanks to both of you.Comment
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With the new loan, it is NO LONGER paid in full.
Often times, you can reach and agreement with SBA to remove the lien or pay off a portion of what is owed. Just depends on the overall circumstances.Comment
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