What happens to a car when it comes to personal reproduction?
What is personal reproduction?
The personal restitution procedure is one of the debt consolidation procedures. It is a procedure to maintain the assets including housing as it is, reduce the debt significantly, and repay it in principle 3 years.
Depending on the area you live in, if you don’t have a car, you may have trouble with your work or life, so if you have a car loan, you may be wondering what effect it will have on your debt consolidation. is. I think it is a natural idea to think whether cars can do the same if personal reproduction procedures can maintain the house. However, in personal reproduction, there are cases where it is not necessary to let go of the car, and cases where it is necessary to let go.
It differs greatly depending on whether you use car loan
Individual revitalization is a procedure that reduces the debt to one-fifth and repays in installments for those who have regular income and can continue planned repayment. Unlike personal bankruptcy, it is a procedure that does not require disposal of property, so it is possible to continue to hold a car if you have not made a car loan or have paid for it. However, if you own a car that has been highly assessed at the time of filing, depending on the circumstances, the repayment amount based on the recovery plan may be higher than usual. Having a car without a loan may have a negative impact on the reinstatement process, but the bigger issue is when you have a car loan.
If you have a loan, it is difficult to continue using the car
If your car has a loan, please check your car verification first. There are the following three patterns in the description of the owner.
If you borrow a car loan at a bank, in most cases the name of the car is the buyer = yourself.
2 “Loan companies (mainly credit sales companies)”
If you use a loan company, the loan contract will have a “retention of ownership” clause, and the car registration will be “loan company”. Retention of ownership means making a loan with the car you buy as a security. The buyer is the first owner when the car loan is paid off.
3 “Dealer (car sales company)”
When using a loan company, the owner may be a “dealer”. There are various reasons, but once the auto loan is paid off, it is the same as 2 that the buyer becomes the owner for the first time.
Then, when the loan can not be paid in the pattern of 2 or 3, or when the car loan is restructured, the credit sales company, the creditor, has the right to sell the car and recover the proceeds from the money. Will be In other words, if you have a car loan, you will be pulled up the car in principle when you go through the personal rehabilitation procedure.
If the owner column is a loan company, the countermeasure is
Basically, there is no defense against a registered loanholder loan company raising a car based on the terms of retention of ownership. It is the trouble of debt consolidation procedure. If you only think that you can not lift the car, you will have to pay the remaining debt of the loan. However, making repayments biased to only a specific creditor will break the debt consolidation principle, which must treat creditors equally. Recovery procedures can have a major impact on recovery plans (repayments based on procedures). There is also a possibility that relatives will take over, but there are cases where it is necessary to add relatives to a creditor, which may lead to unexpected results, and without expert advice it is possible to take risks. It will be accompanied.
Make an agreement with the loan creditor
Although the recovery procedure requires stable income, there is a way to avoid raising money if you have a situation where you can not get income when the car runs out because the car does the necessary work. . For example, “London that mainly delivers care food”, “Delivery shop made up of delivery”, etc., income decreases due to the lack of cars, and the personal reproduction procedure may be overwhelmed. It is when there is a situation. In such cases, negotiate with the car loan creditor to change the terms of the repayment. This is called a “participant agreement”. It is necessary to have the court’s permission in order to conclude the demarcation agreement, so it is necessary to explain that the car is essential to earn income continuously. If permission is granted, an agreement will be signed with the loan creditor to not repay the deduction right instead of repaying the amount equivalent to the market value of the car (= holding the car and using it). Of course it is difficult without professional intervention.
If the owner field is a dealer
Even if the owner field of car verification is a dealer, the contract company transfers the price to the dealer for the loan company, and the owner is transferred to the loan company, and the purchaser agrees. In such a situation, if you file for a personal renewal, the loan company will request a car increase according to the contents of the contract. However, the 2010 Supreme Court ruled that it would not allow loan companies to raise cars. This is because the creditors must be equal in the personal rehabilitation procedure, even if the contract owner is a loan company and the owner is not an external loan company (does not have counter requirements). If that is the case, then the loan company is not giving priority to reimbursement for the sale price of the car. If the owner of the car with a car loan is a dealer, then it may be said that the car can not be pulled up even if the individual renewal procedure is carried out, but the same judgment is made in all the courts. Rather, I can not say that I can hold a car. You will be asked for expert instructions on how to deal with it in practice.
The car’s value would have dropped significantly if it had been a long time since you formed a car loan. In such a case as well, we may use the method described above to prevent the car from being pulled up. However, they may even give up their ownership when a creditor decides that the car is too low or not. There is no worry that you can raise it.