There are a lot of details to remember when you file for bankruptcy. Therefore, it is imperative to hire the right attorney to walk you step by step through the journey. One topic that is especially important to my clients and comes up frequently is cars and bankruptcy.
A few months back, I wrote a blog on what happens to your car when you file for bankruptcy. When it comes to filing for bankruptcy (be it Chapter 7 or Chapter 13), there are different choices you must make when it comes to your vehicles. To delve into those differences, please read this previous blog, “What Happens to Your Car in a Bankruptcy?”
To expand on this subject and clarify, I want to take some time and point out the important facts that you MUST remember when you file for bankruptcy and after you file for bankruptcy. I want to drive home (see what I did there?) the following points:
- Continue making timely payments if you want to keep your car throughout the bankruptcy filing.
- Cars are considered secured debt which means they are different than credit cards (which are unsecured debt). You CANNOT get your vehicle balance discharged AND keep your car at the same time.
- If you are behind on your payments, the bankruptcy stops repossession temporarily. Once the bankruptcy is complete, you will need to decide whether you want to keep the car or not.
- The vehicle finance company will most likely not accept online payments, so be prepared to send in payment another way.
- Do NOT sign a reaffirmation agreement unless you are behind in your payments. If you do sign one, know that in the future you would not be able to walk away from your car.
The words in bold above are that way, because they are important! There are many, many details and facets to bankruptcy. I am here to help and take your through that journey. My goal is to educate you as well as file for you. It is important to pay attention to all of the facts and details before, during and after. The last thing I want is for your car to be repossessed, because you thought the bankruptcy erased your vehicle debt.
In the end, there are two things to remember:
- If you have a question and are a client (past or current), please ask before assuming.
- I am HERE to help.
Filing for bankruptcy is easier and proven more effective with an attorney. I can help and it is my pleasure to do so.