With the economic downturn and unemployment spike there are a lot of people recently faced with the difficult decision of whether to declare bankruptcy or not. It’s a big decision, and there are many factors that should be taken into account. The one we will be talking about today involves what is going to happen to your pre-bankruptcy car loans?
What will happen to your car loan completely depends on two things. Type of bankruptcy you are filing, either a chapter 7 or 13, and your payment history. If you are planning on trying to keep your vehicle, but are currently late on your payments you will need to bring those current before filing for bankruptcy. This is not a guarantee that you will be able to keep the car, but it will help your chances.
Keep Your Pre-Bankruptcy Auto Loans
If you are planning on filing a chapter 7 and want to keep your car, then you have two options. Reaffirm the loan, or redeem the loan. Both we have discussed deeply in separate articles so be sure to read them if you require additional information.
Chapter 13 bankruptcy works in almost the same way. If you want to keep your pre-bankruptcy auto loan in chapter 13 bankruptcy then you can either cram down the loan or you can include the auto loan in bankruptcy and repay the debt over a three-five year period.
Bankruptcy Auto Financing Can Help
If you are thinking about filing bankruptcy, if the option of keeping your current vehicle doesn’t seem feasible for you, then you still have some options. Although it is no secret that bankruptcy bruises your credit score and may make it seem impossible to get a new line of credit after, it’s not. Here at BankruptcyAutoFinancing.com we match bankrupt individuals with Fresno car dealers that will grant them a car loan after bankruptcy.
Simply fill out our quick and easy application to see what you could qualify for today. You will be contacted with your approval information, and we will schedule an appointment with the Fresno, CA lender near you.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.