Is bankruptcy a good way to surrender assets?

by DeLadurantey Law Office, LLC on May 28, 2014

surrender assetsIf you are struggling financially and you have numerous assets without equity, bankruptcy may be the best solution for getting your finances under control. We can help you determine if a Chapter 7 or Chapter 13 filing could benefit you.

When you have assets such as homes, vehicles, boats or other types of property that have been pledged as collateral to secure loans, the true value of such assets is in the equity you own in it. Equity is the fair market value of the asset less what you owe on it. In other words, if you sold the item at its fair market value price and paid your loan in full with the proceeds, would there be any amount leftover to put in your pocket?

If you have no equity in an asset and you cannot afford to make the monthly payments on it, you should consider the reasons for why you are trying to keep the asset. Sometimes it is difficult to set aside your emotions, but when it comes to getting your financial life back on-track, it is necessary to do so.

For example, if you own a home that has three mortgages on it and the balance of the first mortgage loan exceeds the value of the home, it is time to examine whether it is worth struggling financially to hold onto it. If you are unable to sell the house on the market and it is unlikely you can ever break even on it, bankruptcy may provide the answer. If you are eligible to file a Chapter 7 case, you may be able to surrender the property back to the lender and discharge or eliminate the debt.

If you have assets that you are “under-water” on and you are interested in learning how surrendering them in bankruptcy could benefit you, call DeLadurantey Law Office, LLC to schedule your appointment.

The “defender of the little guy,” DeLadurantey Law Office, LLC. handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.

 

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