Car Valuations in Bankruptcy | Tampa Bankruptcy Attorney | Michael Barnett, PA | Office locations in Hillsborough, Pasco & Polk County Florida


This firm is now able to have all meetings necessary to file a bankruptcy case by telephone or video chat via Skype or Zoom.  Documents can be signed electronically, and filed upon the electronic signature with the originals mailed to the office by postal mail later.  Court hearings before judges are almost always held by telephone until the emergency is over, and meetings of creditors set before April 10 are continued, ones set after April 10 are tentatively being scheduled but procedures may change to do these by video or telephone.


The firm remains open to serve your needs while keeping everyone safe.

813-870-3100 | 506 N. Armenia Ave. Tampa FL 33609

Michael Barnett, PA
506 N. Armenia Ave. Tampa FL 33609 | 813-870-3100


Car Valuations in Bankruptcy:

In Chapter 13 bankruptcy you may be able to have the court reduce the debt on the car to the value of the car. The value is required to be the retail value, but this still can save man clients a good deal of money.


There are limit on whether this can be done. The most important limit is normally the car must have been purchased more than 910 days before the bankruptcy is filed. There are some circumstances when you could have the court rule what a car is worth even though it was purchased more recently. These include if the car was refinanced after it was purchased, if the car was purchased for business rather than personal use, or if the car was purchased for someone other than the buyer.


Even if the limit applies, it is still usually possible to reduce the interest rate on the car loan. Courts in Tampa are usually reducing the interest rates on the car loans to 5.25% now.

In Chapter 7 bankruptcy you can also have the Court rule on what a car is worth, but in Chapter 7 this value would have to be paid to the creditor in a lump sum payment shortly after the ruling is made. This makes the procedure much less common in Chapter 13 than in Chapter 7. There are entities that specialize in financing loans for persons in bankruptcy to allow them to repurchase cars through this process. However, these loans are usually for very high interest rates.


Michael Barnett, Esq.
Michael Barnett, PA
506 N Armenia Ave.
Tampa, FL 33609-1703


Over 25 Years in Florida

Serving Hillsborough and Pasco County Florida for Over 25 Years!

Michael Barnett has provided his services in and around Tampa, Florida covering Hillsborough, Pasco and Polk County for over 20 years.

Board Certified

Mr. Barnett is board certified by the American Board of Certification in consumer bankruptcy law, and has been board certified since January 1993.

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