If you file for Chapter 7 Bankruptcy, the bank cannot repossess your car without first obtaining permission from the court. Therefore, you must stay current on your loan before you receive a discharge, or before the court receives permission to repossess your car. Furthermore, if your bankruptcy is successful and you receive a discharge, all of your dischargeable unsecured debt will be wiped out, leaving more funds to pay for your car.
If you file for a Chapter 13 Bankruptcy, you can cure defaults on your car loan or possibly even lower your car loan payments. Your payments can be through the bankruptcy payment plan. In addition, if your car was repossessed within 10 days prior to your filing, we can request that the bank return your car.
In many cases you can retain your home and automobile in a Chapter 7 Bankruptcy proceeding so long as you are current with your loan. If the home or automobile has equity in excess of the allowed exemption amount, you might want to consider filing a Chapter 13 petition, which allows you to develop a plan for repaying your creditors without necessarily liquidating the assets.
Please feel free to contact us today so that we may discuss the options that are available to you.
Call Van Law Firm at 702-529-1011.