2006-08-19 14:48:56 · 7 answers · asked by Derick Graham 2 in Business & Finance ➔ Personal Finance
You must list ALL debts in your bankruptcy petition, so you do have to include your car loan in the bankruptcy petition. Just because you include the loan in your petition does not mean that you will lose the car.
If you are up to date on your payments, you can keep your car as long as you continue to make your payments.
If you owe a lot more on the car than it is worth, it could be possible to do a 'cram-down" on the amount owed so that you only have to pay back the actual value. In some states, there are companies that will contact you to refinance your loan to do this cram-down. What happens is that you will refinance your vehicle with them for the value of the car. You'll pay a higher interest rate, but you will probably pay less for your car.
If you continue the loan with your original lender, you might be offered a "reaffirmation' agreement. If you sign this, you are agreeing to continue to be responsible for the loan as though it wasn't included in a bankruptcy. If you sign this, and then fail to make the payments, they will repossess the car and can legally sue you for the balance owed on the car. They will auction off the car, and will probably get less than the car is worth, and you will owe the difference.
If you don't sign the reaffirmation agreement, if you decide later that you don't want the car, you can stop making the payments and can return the car without any further damage down to your credit. If they auction off the car, you will not be responsible for the difference.
No matter what, if you stop making the payments, they will most likely repossess the car.
I would highly recommend using a lawyer who only does bankruptcy cases to file bankruptcy. The laws have changed recently and someone who only does bankruptcy will be more likely to know the ins and outs of those changes. You can also file "pro se" or on your own, but you won't be aware of all the laws. Using a lawyer will be your best bet. Many lawyers offer free consultations for the first visit. You can meet with several and then chose the one you feel most comfortable with.
Good luck.
2006-08-19 16:09:47 · answer #1 · answered by Mama Pastafarian 7 · 0⤊ 0⤋
For financial and credit subject I was search for solutions at this site: SALESQUOTES.INFO-
RE I live in California, if I file bankruptcy can you keep your car if you are not late on payments?
#EANF#
2014-10-11 07:28:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes you are allowed to say what you are willing to reaffirm. I did that to keep my car. The key is being current on the payments and having the bank or loan office agreeing to this.
2006-08-19 15:24:10 · answer #3 · answered by andy 7 · 0⤊ 0⤋
Yesm you can:
How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/How-to-Avoid-Bankruptcy-Explained.html
2006-08-20 01:42:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The disposition of the vehicle might desire to have been particular in the financial disaster submitting. in all probability they have not afflicted to reposess it yet, yet they might accomplish that at any time.
2016-10-02 07:32:35 · answer #5 · answered by sarver 4 · 0⤊ 0⤋
In Florida, you can. You simply do not list them as one of the debts you wish to be relieved from, and pay them as you have been.
2006-08-19 14:57:17 · answer #6 · answered by Anonymous · 0⤊ 1⤋
depends on how much equity you have in the car......you do have to file the car if you owe money on it.......
2006-08-19 17:28:48 · answer #7 · answered by Anonymous · 0⤊ 0⤋