In the recent past, the transportation industry has witnessed a drastic change. Companies like Uber and Lyft have made it easier for people to commute from one place to another in a hassle-free manner. Even if they do not own a car, they can enjoy the luxury of traveling in one by booking a ride on Uber or Lyft.
The emergence of these companies has not only helped people to conveniently commute but has proven to be a viable income source for a number of people. Car owners are using their cars to make money while drivers are using their skills for the same purpose. However, an industry that has suffered the most due to the rising popularity of these companies is taxi and cab. Uber, Lyft and other such companies have become immensely popular with people; thus, there are not many customers left for taxis and cabs. Consequently, they are suffering huge financial losses. So, what’s in store for them? How can they cope up with these losses? The answer to this question is bankruptcy. It may prove to be a viable solution for them.
Here are the bankruptcy details for taxi/cab drivers who are facing financial losses due to rise in the use of Uber and Lyft or other such reasons:
In case your taxi business is incurring losses for you and you have outstanding debts or security interests to pay, you can go for the option of chapter 7 bankruptcy. This can help them to become debt-free and get rid of all other obligations related to their taxi business by surrendering the medallion.
When filing for a chapter 7 bankruptcy, the owner is deemed to giving their consent that they are no more entitled to receive any equitable or financial interest in their business. However, by giving away their rights, they will also be losing their responsibility of paying any outstanding debts, interests or other balances. Thus, they can have a new start without any financial obligations or have the burden of paying any outstanding debts.
In case the owner doesn’t want to surrender the medallion as the security interest has a higher value as compared to the taxi medallion, they can opt for chapter 13 bankruptcy. This allows them to keep the medallion and use the “cram down” option. In this way, the value of the security interest is lowered according to its current market value. The biggest benefit of going for this option is that it helps the owner to retain the medallion without facing any difficulties.
Regardless for the bankruptcy option you are going for, it is recommended to seek expert advice before taking the final call. An experienced attorney who specializes in bankruptcy and related issues can assist you in not only selecting the viable option but throughout the proceeding phase as well.
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If you looking for information on the bankruptcy options available at your disposal and want assistance in proceedings, you have to go nowhere but contact Loan Lawyers. We have a team of professional, experienced bankruptcy attorneys who have assisted for 5,000 people in South Florida related to bankruptcy matters.
Not only we can help you to take the most appropriate financial decision but can also make the whole process of filing for bankruptcy a hassle-free one for you. All the important matters related to bankruptcy will be dealt with utmost attention and care by our experienced bankruptcy attorneys.