When you file for bankruptcy you have to make a decision about what to do with your car. You can opt to keep your car and make payments on it or you can surrender it to the lender. If you want to keep your car you’ll need to reaffirm your loan or pay off the loan in full.
If you reaffirm your loan you’ll enter into a new contract with your lender that states you’ll continue to make payments on your loan. You’ll need to make sure you can afford the payments before you reaffirm your loan because if you can’t make the payments you could lose your car.
If you pay off your loan in full you’ll own your car outright and won’t have to make any more payments on it. This option might not be available to you if you can’t afford to pay off your loan.
If you decide to surrender your car you’ll give it back to the lender and won’t be responsible for making any more payments on it. The lender will sell the car and use the money to pay off your loan.
You should talk to a bankruptcy lawyer before you make a decision about what to do with your car. The lawyer can help you understand the pros and cons of each option and make sure you make the best decision for your situation.
Can you file for bankruptcy and keep your car?
Answer: Yes you can file for bankruptcy and keep your car as long as you reaffirm the debt.
What are the consequences of filing for bankruptcy?
Answer: The consequences of filing for bankruptcy are that you will lose your credit score and you will have difficulty getting credit in the future.
How long does bankruptcy stay on your credit report?
Answer: Bankruptcy stays on your credit report for 7 to 10 years.
How does bankruptcy affect your credit score?
Answer: Bankruptcy affects your credit score by dropping it by 100 to 200 points.
Can bankruptcy remove all debt?
Answer: Yes bankruptcy can remove all debt.
What are the types of bankruptcy?
Answer: The types of bankruptcy are Chapter 7 and Chapter 13.
What is a Chapter 7 bankruptcy?
Answer: A Chapter 7 bankruptcy is a liquidation bankruptcy which means that your assets are sold in order to pay off your debts.
What is a Chapter 13 bankruptcy?
Answer: A Chapter 13 bankruptcy is a reorganization bankruptcy which means that you propose a repayment plan to pay off your debts over a 3-5 year period.
How much debt do you have to have to file for bankruptcy?
Answer: You must have at least $1000 in debt to file for bankruptcy.
What are the requirements for filing for bankruptcy?
Answer: The requirements for filing for bankruptcy are that you must complete credit counseling and you must complete a means test.
How does filing for bankruptcy affect your taxes?
Answer: Filing for bankruptcy does not affect your taxes.
Can you file for bankruptcy on student loans?
Answer: You can file for bankruptcy on student loans but it is very difficult to do so.
Can you file for bankruptcy on your mortgage?
Answer: You can file for bankruptcy on your mortgage but you will still owe the debt and will have to continue making payments.
What are the limitations of bankruptcy?
Answer: The limitations of bankruptcy are that you can only file for bankruptcy once every eight years and certain debts such as student loans and taxes cannot be discharged.
What are the benefits of bankruptcy?
Answer: The benefits of bankruptcy are that it can give you a fresh start financially and it can discharge most of your debts.