Automobile Exemptions

Some people believe that filing for bankruptcy is a sign of failure and that it will involve losing all of your property. The reality is very different: bankruptcy is a set of legal protections designed to help people with heavy debt take control of their lives. Although bankruptcy can mean certain sacrifices to repay your debts, you may be able to keep important possessions – including your automobile.

Under Federal bankruptcy law, if the value of a vehicle (minus any remaining car payments or similar debt) is less than $3000, the vehicle is safe under Federal law from being claimed. If your vehicle is worth more than that, you may be able to own a vehicle of lesser value. If you depend on your vehicle for work, it may be exempt simply because it is essential to your ability to make a living.

The state of Massachusetts also offers an automobile exemption, but the maximum value is only $700. There are numerous other differences between Federal bankruptcy and Massachusetts bankruptcy, however, that might affect the best course of action for you. Depending on your situation, there might be other factors that make state bankruptcy protections more appropriate for your needs.

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If you are struggling with heavy debt, bankruptcy may be the best way for you to free your life of debt and start again. To learn more about bankruptcy and what options may be available to you, contact the experienced Boston bankruptcy lawyers of Joshua A. Spirn & Associates today by calling 800-975-5346.