Are you in bankruptcy and thinking about selling your car? Think again! The sale of a vehicle in bankruptcy is strictly prohibited. When you file for bankruptcy you are required to give a complete list of all assets and debts for your attorney and judge to determine what can be either liquidated or repaid.
Selling your automobile before your bankruptcy is discharged can result in being charged with bankruptcy fraud. It is an offense punishable up to five years in prison and/or $250,000. Your best bet if you want to get rid of car is to sell it before bk or surrender the vehicle to the bankruptcy and get a new car with auto financing after bankruptcy.
What Are My Other Options?
Being upfront with your attorney and listing your vehicle as an asset is highly recommended. You have three options redeeming, surrendering, and reaffirming. Redeeming and reaffirming allows you to keep your vehicle, while surrendering allows you to walk away from the loan without owing another penny. Your attorney will be able to advise in what is the best option for you financially.
If you choose to surrender your car and want to buy another you will need to figure out your budget. You can use our bankruptcy auto loan calculator to determine what your monthly payment would be with a down payment and all of your monthly expenses.
Get a Vehicle after Bankruptcy
There are dealerships that will finance a car to you even if you have a bankruptcy on your credit report, or if you are currently going through bankruptcy. Here at Bankruptcy Auto Financing we work with a network of nationwide special finance lenders that will compete for your business. They can get you approved for an auto loan during bankruptcy, and have you driving off in your new or used vehicle in a few short days.
Fill out our online application today to see if you are pre-approved. Your information will be sent to our lenders, and you will be contacted with your approval information. We will set up an appointment with a dealership in your area that can offer you the best deal for your situation.
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.