The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

How to Save Your Car if You File for Bankruptcy

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 2 mins read
bankruptcy
9
SHARES
156
VIEWS
Share on FacebookShare on Twitter

If you’re filing for bankruptcy to get some relief from creditors and get your financial situation back on track, you may have wondered what happens to personal assets like your car during the bankruptcy filing process.

Many people fear losing their car to creditors when filing bankruptcy, but the good news is that in most cases, bankruptcy law will protect your vehicle from repossession.

The key thing to remember when filing for bankruptcy is that you will be granted different types of protection based on the type of bankruptcy you are filing.

Whether you file Chapter 7 or Chapter 13, you’ll need to consider whether you can really afford to keep the vehicle given your current financial situation. Either way, filing for bankruptcy will cease repossession of your vehicle.

Saving Your Car with Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, you will need to evaluate how much your car is worth and decide if it’s time to surrender your vehicle as you liquidate assets during the bankruptcy process. If you decide to keep it, you need to make sure that you really can afford to make payments on time.

You may have the option to sign a Reaffirmation Agreement with your lender that acknowledges that you still have the car loan while filing bankruptcy, and that the lender has the right to pursue legal methods for collecting that debt if you don’t make your payments on time. This agreement can only go into effect if you are current on your car payments.

Every state has its own set of limitations on whether a car is exempt from bankruptcy, and this is usually based on how much the car is worth. For example, in the State of Oklahoma, a car that you don’t owe any money on is exempt if it is worth less than $7,500. You can talk to a bankruptcy attorney to find out if your car is exempt.

If you are leasing your vehicle and you find that you can’t afford to continue making lease payments, you will need to give the car back to the dealership.

Saving Your Car with Chapter 13 Bankruptcy

When you file for Chapter 13 bankruptcy, the courts will give you a chance to catch up on any outstanding debts, including your car loan debt. This means that you could be set up with a new payment arrangement so that your monthly payment becomes more affordable.

Your creditors are also not allowed to harass you or threaten to take away your vehicle (or other assets) when you file Chapter 13. In some ways, you are granted immunity from your creditors so that you have a chance to catch up on your loans and payments. As long as you are making your payments on time, you will be able to keep your car.

Tags: Chapter 13Chapter 7
Previous Post

I Can’t Afford to Bury a Family Member – What Should I Do?

Next Post

How to Remove A Tax Lien

Related Articles

50 cent
Bankruptcy

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach
Obama Gives Student Loan Relief to Millions with College Debt
Bankruptcy

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach
5 Things to Do Before You Go Into Foreclosure
Bankruptcy

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach.com bankruptcy
Bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy
Bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
cost to file for bankruptcy AskTheMoneyCoach.com
Bankruptcy

How Much Does it Cost to File for Bankruptcy Protection?

by Lynnette Khalfani-Cox, The Money Coach
truth bankruptcy AskTheMoneyCoach.com
Bankruptcy

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy rejected AskTheMoneyCoach.com
Bankruptcy

Avoid These Common Mistakes Or Your Bankruptcy Filing Will Be Rejected

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy fresh start AskTheMoneyCoach.com
Bankruptcy

Best Ways to Rebuild Your Life After Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
Next Post
How to Remove A Tax Lien

How to Remove A Tax Lien

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist