Chapter 7 Bankruptcy and Your Car
Many people filing for Chapter 7 bankruptcy want to know what will happen to their car. Whether you can keep your car in Chapter 7 depends on whether you're 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.
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.
People often wonder how Chapter 7 bankruptcy will affect their ability to keep their car. We explain how to tell your creditors whether you want to keep a leased or financed car in Chapter 7 bankruptcy or surrender it to the lender.
Find out the chances of losing a financed vehicle to repossession when you file for Chapter 7 and what you should do if you want to keep your car.
Debtors have two car lease options in Chapter 7 bankruptcy. Car leases can be "assumed" or continued or "rejected" and terminated. Learn how filers declare lease intentions in Chapter 7.
Debtors who reaffirm a debt agree to be responsible for it after bankruptcy. Learn what's required for reaffirmation and how reaffirming a financed vehicle contract protects debtors from car repossession.
Whether you can keep two cars in Chapter 7 bankruptcy depends on a number of factors. Learn more here.
The motor vehicle exemption safeguards the equity in a car, truck, motorcycle, or van during Chapter 7 bankruptcy. Explore bankruptcy exemptions, reaffirmation agreements, and more to prevent losing your vehicle in Chapter 7 bankruptcy.
Learn about car repossessions: how they work, how to avoid them, and your options if it happens to your car.
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.
If your car loan lender gets court permission, it can repossess your car during Chapter 7 bankruptcy. Find out how to avoid losing your car in Chapter 7 bankruptcy.
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