Your Car in Chapter 7 Bankruptcy
Can you keep you car if you file for Chapter 7 bankruptcy? Learn about it here.
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Many people filing for Chapter 7 bankruptcy want to know what will happen to their car. Cars are often important to get to work or school and to take care of other important tasks, like buying food. The good news is that most people filing for Chapter 7 bankruptcy are able to keep a modest car.
Whether you can keep your car in Chapter 7 depends on whether you are behind on your car payments (unlike Chapter 13, Chapter 7 doesn't allow you to make up arrears through the bankruptcy), the amount of your car loan (if any), and any available exemptions you can apply to that loan.
You can also keep your car by using one of the bankruptcy options for handling secured debt -- redeeming the car or reaffirming the loan. Or, if you don't want to keep your car, you can surrender it in the bankruptcy.
If you lease your car, your options are different -- you can continue with the lease by assuming it in the bankruptcy, or you can terminate the lease by rejecting it.
Start here to find out how cars are treated in Chapter 7 bankruptcy.
In most cases, Chapter 7 bankruptcy allows you to keep or surrender your car or truck.
Here's an overview of your options if you want to keep your car in Chapter 7 bankruptcy.
If the trustee abandons your car in Chapter 7 bankruptcy, you get to keep it.
Chapter 7 bankruptcy itself does not provide a way to catch up on overdue car payments. But it might help in other ways.
Here's how to determine the replacement value of your automobile for bankruptcy.
Leasing a car? Here are your options if you file for bankruptcy.
In Chapter 7 bankruptcy, you can assume or reject a car lease. Learn more.
If you have a car loan, you can reaffirm the loan, redeem the car, or surrender the car in Chapter 7 bankruptcy.
Learn about secured debts in bankruptcy and your options for keeping or giving up the property securing them.
If you want don't to keep your car (and the related debt) in Chapter 7 bankruptcy, you can surrender it.
If you have a car loan, you may be able to keep your car in Chapter 7 bankruptcy by reaffirming the loan.
You can keep your car in Chapter 7 bankruptcy if you redeem it -- that is, pay the car's market value in one lump sum.
Whether you can keep two cars in Chapter 7 bankruptcy depends on a number of factors. Learn more here.
Find out if you can keep an expensive, luxury vehicle in Chapter 7 bankruptcy.
Own your car free and clear? Find out if you can keep it in Chapter 7 bankruptcy.
If the bankruptcy trustee wants to take your car at the 341 hearing, you won't be able to dismiss your case to save your vehicle.
Learn about car repossessions: how they work, how to avoid them, and your options if it happens to your car.
If your car loan lender gets court permission, it can repossess your car during Chapter 7 bankruptcy. But you have options to avoid this.
If you fall behind on your car payments, your lender can repossess your car without warning, with some limitations.
If your car has been repossessed, filing for Chapter 7 bankruptcy may allow you more time to negotiate with your lender and get your car back.
Learn how motor vehicle exemptions work, and find out the amount of the motor vehicle exemption in your state.
The motor vehicle exemption helps determine whether you can keep your car, truck, motorcycle, van, or other automobile in Chapter 7 bankruptcy.
Click on this link to learn about the motor vehicle exemption in your state.
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