If you’re struggling to make ends meet and have already fallen behind on your car payments you might be wondering if bankruptcy can help you get your repossessed car back. The answer is maybe. It depends on a few factors including the type of bankruptcy you file the state you live in and whether the lender has sold the car already.
If you file for Chapter 7 bankruptcy the court will appoint a trustee to oversee your case. The trustee’s job is to sell your nonexempt assets and use the money to pay your creditors. If your car is considered an exempt asset in your state the trustee will not sell it. However if your car is considered nonexempt the trustee may sell it to pay your creditors.
If the trustee does sell your car you have the right to redeem it by paying the amount the trustee sold it for. This is typically the amount you owe on the loan plus any accrued interest and fees. If you don’t have the money to redeem the car you can still try to get it back by negotiating with the buyer. The buyer may be willing to sell the car back to you but they are under no obligation to do so.
If you file for Chapter 13 bankruptcy the court will create a repayment plan for you to repay your debts over three to five years. Your car will not be sold in a Chapter 13 bankruptcy but you may still have to give up your car if you’re behind on your payments.
If you’re behind on your car payments and facing repossession bankruptcy might be a way to keep your car. However it’s important to understand that bankruptcy is not a guarantee that you’ll be able to keep your car.
Can bankruptcy help me get my car back if it’s been repossessed?
Filing for bankruptcy won’t help you get your car back if it’s already been repossessed.
However bankruptcy may help you if your car is about to be repossessed.
I filed for bankruptcy.
Can the lender take my car even though it’s included in my bankruptcy?
The lender can’t take your car as long as you’re up to date on your payments and the car is included in your bankruptcy.
I’m behind on my car payments and the lender is threatening to repossess my car.
Can I file for bankruptcy to stop the repossession?
Yes you can file for bankruptcy to stop the repossession of your car.
I filed for bankruptcy and my car was repossessed.
Can I get it back?
It’s unlikely that you’ll be able to get your car back after it’s been repossessed even if you’ve filed for bankruptcy.
I’m about to file for bankruptcy.
Should I try to sell my car before I do?
It’s best to wait to sell your car until after you’ve filed for bankruptcy.
This is because you may be able to get a better price for your car after your bankruptcy is discharged.
I’m going to file for bankruptcy.
Will I be able to keep my car?
It depends.
If you’re up to date on your payments and your car is considered a necessity then you may be able to keep your car.
However if you’re behind on your payments or your car is considered a luxury then you may not be able to keep it.
I’m behind on my car payments and the lender is threatening to repossess my car.
If I file for bankruptcy will the lender be able to take my car?
If you’re behind on your payments and your car is about to be repossessed then you can file for bankruptcy to stop the repossession.
However if your car has already been repossessed then filing for bankruptcy won’t help you get your car back.
I filed for bankruptcy.
Can the lender still come after me for the deficiency balance on my car loan?
Yes the lender can still come after you for the deficiency balance on your car loan after you’ve filed for bankruptcy.
I’m going to file for bankruptcy.
How will it affect my car loan?
Filing for bankruptcy will discharge your responsibility for repaying your car loan.
However you may still owe a deficiency balance on your loan if your car is worth less than what you owe.
I’m about to file for bankruptcy.
Can I transfer my car loan to someone else to avoid having it discharged in bankruptcy?
No you can’t transfer your car loan to someone else to avoid having it discharged in bankruptcy.
I’m going to file for bankruptcy.
Will my car loan be discharged?
Yes your car loan will be discharged in bankruptcy.
However you may still owe a deficiency balance on your loan if your car is worth less than what you owe.
I’m behind on my car payments.
If I file for bankruptcy will the lender be able to take my car?
If you’re behind on your payments and your car is about to be repossessed then you can file for bankruptcy to stop the repossession.
However if your car has already been repossessed then filing for bankruptcy won’t help you get your car back.
I’m going to file for bankruptcy.
How will it affect my cosigner on my car loan?
Filing for bankruptcy will discharge your responsibility for repaying your car loan.
However your cosigner will still be responsible for repaying the loan.
I’m going to file for bankruptcy.
How will it affect my car insurance?
Filing for bankruptcy will not affect your car insurance.
I’m going to file for bankruptcy.
How will it affect my driver’s license?
Filing for bankruptcy will not affect your driver’s license.
