Can I keep my car in bankruptcy? – St. Louis Chapter 7 Bankruptcy Attorney
Yes! Not only can you keep your car, you may even be able to save some money. Of course, you should talk to a St. Louis Chapter 7 Bankruptcy Attorney in order to make sure you can keep your car, but in most cases your car will not be in any danger.
You could lose your car for two basic reasons in a bankruptcy: you aren’t making your car payments (duh!) or you have too much equity (meaning the car is worth way more than you owe on it) and the trustee in your case must sell your car to satisfy some unsecured debts. The last scenario should be easily detected by a St. Louis Chapter 7 Bankruptcy Attorney, so please be sure to talk to an attorney before you file your case.
But you may be able to save your car even if you are behind on payments. In many Chapter 7 Bankruptcy cases, you can redeem, or buy out, the lien on your car. For example, if you owe $13,000 on a car that is only worth $8,000, the bankruptcy code allows you to force your old lender to release the lien for the $8,000, which you will borrow from another lender. This can save you quite a bit of money. Talk to your St. Louis Chapter 7 Bankruptcy Attorney about this possibility.
You may also discuss with your St. Louis Chapter 7 Bankruptcy Attorney the possibility of doing a Chapter 13 Bankruptcy and forcing your lender into a lower interest rate, and allowing you to pay the balance of your car over a 36 to 60-month period. This can save you money and will stop repossession of your car if you are behind on payments.
So, in short, you can generally keep your car in either Chapter 7 or Chapter 13 Bankruptcy.
Call our St. Louis Chapter 7 Bankruptcy Attorney today at 314-827-4027.