Can You Still Get A Car Loan While Filing Bankruptcy?
Bankruptcy is not always easy to go through and no matter what your situation is, you will need a car to get you back and forth to work everyday. Unfortunately, if you are filing for bankruptcy, you will need to make some very important decisions regarding important matters that may or may not change the way you work, live, or play. Decisions can affect everyone in the family so don’t take them lightly.
Fortunately, most states will allow some type of arrangement or agreement on a car loan debt when you are filing for Chapter 7 bankruptcy. There are many factors that will play a role in this decision; the make and model of your vehicle and whether or not your trustee will even grant you the right to keep your vehicle if you do file bankruptcy.
If you cannot pay off your vehicle while filing for bankruptcy, you may need to let the vehicle go back to the lender.
The good news is that you have the opportunity to buy back your vehicle as long as the lender gives you the chance. You will be able to make a one time payment to the lender with your vehicle. The amount you will need to make is at least the equal fair market value of that vehicle. Lenders call this act redeeming your vehicle and as long as you follow through with your payment, then you can have your vehicle back and you will own your vehicle.
It’s not always possible to return the vehicle or buy it back and if those options don’t work for you, then you may want to reaffirm the vehicle. This means that you will agree to continue making your monthly payments for the same amount as before while you are filing Chapter 7 and agree to leave your vehicle debt out of the bankruptcy case.
There are so many options to choose from. Because of this, it is important that you seek legal advice to guide you in the right path so you are doing what is best for you. It’s important that you don’t count on the advice of bank lenders or institutions to give you advice on what to do during bankruptcy.