A myth is that filing bankruptcy means that you cannot keep it. Actually, filing for bankruptcy can wipe out your obligation to pay your car loan, but the lender can still retrieve the vehicle if you are not current on your payments. A Chapter 7 bankruptcy eliminates unsecured debts and may free up more of your income to pay for your vehicle. A Chapter 13 bankruptcy plan will assist you in avoiding the repossession of your car and allow you to continue making affordable monthly payments on the loan. You can redeem your car and pay only the fair market value instead the full value of the amount borrowed if you have had your vehicle 910 days prior to filing bankruptcy. For example if you have an car loan for $10,000 on a vehicle now only worth $5,000 you can “cram down” the loan amount to $5,000 to make the payments more manageable. Call me to discuss your options.
Contact me today for a consultation at: 813-463-8000.