Can I keep my car in Chapter 7 bankruptcy?
I would like to know if anyone knows if I can keep my car in Chapter 7 bankruptcy? I know it is not worth what I owe on it. My problem is that my credit is shoot, due to helping out family and my husband lost his job which put us in MAJOR debit. We qualify for Chapter 7 but this is the only car my family has. I don’t want to lose it. Can someone please explain to me how this will work?
Hi. It’s not a good idea to reaffirm {not have the debt discharged in bankruptcy} on a vehicle where it appears that you are upside down {owe more than what is worth}. There are many dealerships that will extend credit after the bankruptcy is discharged. If you file bankruptcy, you can keep the vehicle as long as you continue to make payments without reaffirming. If the car is repossessed or your surrender the vehicle, then the debt is already discharged in your bankruptcy if you DO NOT sign a reaffirmation agreement. If you do sign, then, you are still responsible for any amounts owed if the car is repossessed. I hope this helped.
August 16th, 2010 at 2:52 amhttp://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html#work has everything you want to know about chapter 7. The quote from http://www.creditinfocenter.com/bankruptcy/bkfaq.shtml#13 seems to indicate not however this is a question for a bankruptcy attorney as it is difficult to navigate and extrelmely complex (here is what #15 says in all its confusion: 15. Can I keep my car after bankruptcy?
If there is security put in place within 3 years on your vehicle, you must pay the full amount owed or lose the vehicle.
If you own vintage cars which are free and clear and worth thousands of dollars, you are probably not going to be able to keep them. If, on the other hand, you have a car worth $10,000 and you owe $8,000 on it, you will most likely keep it. Again, the need to talk to a good lawyer should be evident. Most leased vehicles have no equity and therefore are entirely exempt. If you owe money on your car, or if it is leased, you must still make the payments. In those instances you will have to redeem or reaffirm the property to keep it. So, maybe is the answer since it’s not clear what you owe on it or its value. Good luck!
August 16th, 2010 at 2:52 amUmm, All i had to do was "Re-Affirm" the debt on the car..which basically promises the loan holder that you will continue to pay the loan and are not going to include the vehicle in the Bankruptcy. (your lawyer will handle this too) It wasn’t a big deal, the biggest hassle was just that they wouldn’t let me pay my car payment on-line anymore until the bankruptcy was completely discharges.
August 16th, 2010 at 2:52 amThe most appropriate site for your question –
http://www.usalegalcare.com/Bankruptcy.htm
Trust me its good
August 16th, 2010 at 2:52 am