If you file a Chapter 7 and keep your car without making the final payments,can the bank take it?

Question

someone asked me this and i have no idea. this is in california.

Answer 1

Yes they can. If you file and want to keep your car, don't put the car in the BK but continue to make your payments and you should be fine.

Answer 2

When you file a bankruptcy you have no choice but to include it in Bankruptcy. Because Bankruptcy is a Federal process it does not matter what state you live in. This is for every state. From there you have 2 options.

Option 1
You can Re-Afirm the car loan and continue to pay on the it in order to keep the car. If after you Re-Afirm the loan you decide to no longer pay it, then any protection you had under bankruptcy is gone. That is they can Repo it and come after you for any difference.

Option 2
Give back the car. At this point any money you owe on the car you would no longer be responsible for.

You can't keep the car but no longer make payments.

Answer 3

If you sign the reaffirmation agreement you are agreeing to the terms of the loan as they were before you filed bankruptcy...so if you defaulted on the loan the bank would do just as if you had never filed bankrupcy. They would repo the car, sell it at auction, and then bill you the differance...if you did not pay the differance they would get a court order for a wage garnishment an probably a seizure of your bank accounts and tax returns.

Answer 4

if you put the car on when filing Chapter 7, they will take the car as a voluntary hand in. If they do not enter on Chapter 7
then they have to make the payments or the bank will take it.
They need to consult with the lawyer on this.

Answer 5

Even if the bank doesn't bother to come after the vehicle for just that last payment, they won't release the lien on the title. You won't be able to sell or trade the vehicle.

Answer 6

Hi, i just emailed you a link to a website that you should definitely check out!!

Answer 7

yes.