When you file a bankruptcy petition for Chapter 7 in Charlotte, NC (The Western District of NC), you state your intention as to certain property. This includes homes and vehicles with existing loans, leases, and even cell phone contracts. In most cases, you have a choice as to whether to turn over the property in question—which relieves you of the debt obligation—or, keep the property and continue paying on the loan or contract.
Statement Of Intention
The bankruptcy petition has a “Statement of Intention” which my clients and I discuss at length when preparing to file. This statement of intention offers a few options for the client regarding the property in question. Section 521(a)(2) of the bankruptcy code requires filing of this statement by the client within thirty days of filing the bankruptcy petition.
Putting The Creditor On Notice
Practically speaking, the Statement of Intention puts individual creditors on notice as to what the client plans to do with the property. The creditor or landlord has a contract with the client and of course wants to know how the bankruptcy will affect them. When a client checks the “Reaffirm” option on the Statement of Intention regarding a vehicle for example, the lender on the vehicle knows that even though the client is filing bankruptcy, she plans to keep her car and continue making payments.
A Smooth Bankruptcy Process For You And Your Family
In most cases, subject to an analysis of the value of the property vs. the existing loan on the property, clients can continue to possess and use property they are willing to continue making payments on—the bankruptcy process moves forward and the vehicle or lease arrangement with the landlord goes unaffected.
Make A Phone Call
Bankruptcy attorneys make it their job to comfort clients as to every aspect of the process and how it will affect their lives in both the short and long-term. Call today if you’d like to get more information and better understand your options. 704.749.7747.