If you own a vehicle and you are planning to file a Chapter 7, it is important to understand what happens to your car in your case. It is common for people to be “upside down” on their vehicle, which means they owe more on their car loan than the car is worth. If this is true for you, call us to learn how filing a Chapter 7 could benefit you.
In a Chapter 7 case, your have three basic options for your car loan:
- Redeem the Vehicle. If you want to keep your vehicle, you are upside down on it, and you have sufficient cash to pay the car’s value (less what you have already paid), you can redeem your car. Unfortunately, most clients do not have the ability to make a lump sum payment to redeem their vehicle.
- Surrender the Vehicle. You can voluntarily surrender your car back to your lender and discharge the debt associated with it. In other words, your surrender acts as payment in full to your creditor. Of course, this means you must be able to find alternative transportation, which is often not an option.
- Reaffirm the Loan. You can enter into a new contract with your creditor called a “reaffirmation agreement.” By signing this contract, you are agreeing to remove the debt from your bankruptcy. In other words, it is not elligible for discharge and you remain liable to pay the reaffirmed amount in full, even after you receive your discharge order.
To learn more about how a personal bankruptcy filing will affect your car loan, call DeLadurantey Law Office, LLC.
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.