Tax season is officially upon us, and there are already people receiving their tax refunds. So what will you be using yours for? As we posted in a recent article many people will be using their tax refunds for bankruptcy car loans, but there are also a lot of people (as proven in the past) that will be using their refunds to pay for bankruptcy filing.

Unfortunately, bankruptcy is expensive and those filing bankruptcy generally don’t have extra cash lying around to pay for it, so they are forced to use the money they receive from taxes. Depending on whether you file a Chapter 7 or a Chapter 13 bankruptcy will determine how much money is needed to file, but they can both typically cost a couple hundred.

I’m Filing Bk with My Taxes, Will They Take My Car?

If you are filing for a chapter 7 bankruptcy, which is a liquidation process, there is a chance that your automobile will be liquidated to repay your creditors. This is because it may have a high value with little to no negative equity. If you want to keep your vehicle you will either have to redeem or reaffirm the debt. In some cases this is not advised and applying for a new bankruptcy auto loan is better.

In a chapter 13 bankruptcy, which is a repayment plan, you have a better chance at keeping your vehicle. Debtors are not required to liquidate assets, but instead will have their debts, income, and assets appraised to see how much the debtor can afford to repay over a three to five year period. This can include your auto loan, but if you believe you are too upside-down on your auto loan, you can surrender the vehicle and apply online for bk car loans.

Bankruptcy Auto Financing Online

Here at BankruptcyAutoFinancing.com we make applying for bk vehicle loans fast and easy. Simply fill out and submit the application and once we have received your information we will then send it to our network of lenders in your area. With most bankruptcy auto loans money down is required. Be sure to save the rest of your tax refund to use as a down payment on your new car.

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.