What happens when you don’t make the payments on your car loan? Car gets repossessed (or repoed). Tow trucks start circling, looking for an opportunity to hook up the car.
If your car is repossessed, you still have a short time to pay off the loan or work out a deal with the lender. Once the car is sold, it is gone, even bankruptcy can’t bring it back. So if your vehicle was repossessed and you want to keep it, you need to do something right away.
If you don’t want to keep the car, the lender will sell it at auction and apply any money received towards your car loan. But be warned, the amount that the lender gets at auction is normally very low and you will end up with a deficiency. If you are going to file bankruptcy, this deficiency would be discharged.
But what if you want to keep the car? This would be a situation where you would want to file a Chapter 13 right away. If you file bankruptcy before the car is sold, the lender MUST return the car to you. Then you can use the Chapter 13 plan to pay what is owed on the car over 3-5 years at the court-approved interest rate. As long as you can make your plan payments, you get to keep the car and at the end of the bankruptcy, the lender must turn over clear title to you.
For more R terms:
Reaffirmation Agreements-Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
Redemption-New York Bankruptcy Lawyer, Jay S. Fleischman
Retirement-Bay Area Bankruptcy Lawyer Cathy Moran
Repossession-Colorado Springs Bankruptcy Lawyer Bob Doig
Reaffirmation Agreement-Cleveland Bankruptcy Attorney, Bill Balena
Reaffirmation-Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
Redemption-Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
Rental vs. Continued Home Ownership-Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
Renting After Bankruptcy-Los Angeles Bankruptcy Attorney, Mark J. Markus
Reaffirm, Redeem, or Retain & Pay?-Wisconsin Bankruptcy Lawyer, Bret Nason
Reorganization (Chapter 13)-Northern California Bankruptcy Lawyer, Catherine Eranthe
Reaffirming Your Mortgage-Allen Park, Michigan Bankruptcy Attorney, Christopher McAvoy
Real Estate-Livonia, Michigan Bankruptcy Attorney, Peter Behrmann