If i happen to do a ch. 7 Bankruptcy would I have to turn in my car that is financed???

Question

Bankruptcy and car???

Answer 1

Yes.  What you must do to keep the car through a Chapter 7 varies depending on whether there is non exempt equity in the car.

Will the trustee take the car?

If there is no equity in the car, after subtracting any car loan and exemption from the car's present sale value, the bankruptcy trustee will not take the car.

If there is equity in the car over and above the value of the exemptions available, a debtor can usually buy any unprotected equity from the Chapter 7 trustee.

If you still owe money on the car, you can choose to reaffirm the debt to the secured lender, keep the car, and continue paying under the existing terms; or you can buy the car from the secured creditor in a single payment for its present value (redemption).  In some jurisdictions, you don't even have to reaffirm the debt:  you can keep the car if you continue to make the payments called for in the contract.

If you choose, you can surrender the car and be free of any obligation to pay for it.

Hope this answers your question

Answer 2

Not if you are up to date with the payments, and not if you can continue to make the payments.  

Answer 3

No you can sigh a reaffirmation agreement and just keep making the same payment you are now at the same interest rate.

Just be sure to call your lender and make sure they continue to report to the credit bureaus some lenders will not report unless you ask them to after a bankruptcy.

You don't have to sign this agreement, as long as you continue to make your payments on time your lender most likely will still let you keep your car but if you go this route you will not be re-establishing your credit like you will if you sign the reaffirmation agreement.

Answer 4

No, you have two options, when you file the chapter 7, not included the car lender and continue make the payment on time. Or if you included them in the chapter 7, they will request you to sign a  "reaffirmation agreement".  But if choose not to sign any new agreement, and continue make the payment on time, chance is they will leave you alone and allowed you to keep the car.

Good luck to you ..........................

Answer 5

No you can do a reaffirmation of the loan.

Then it is not included in the bankruptcy at all.

The only time I advise to let it go, is if you can't make the payments even after the rest of your debt is gone, or if you are UPSIDE DOWN on your car loan.

Bankruptcy will NOT prevent you from getting another car after words but for a few years your intrest rates on loans will be higher.

So if you have a low rate loan or don't have many more payments on your car, I would reaffirm the car loan.