Cars
Many people filing for bankruptcy want to keep their car and you’re in luck, as you can often keep your car in bankruptcy. Find out how.
Filing Chapter 7 bankruptcy puts you in the driver’s seat when it comes to deciding how to deal with your car loan. Whether you want to keep everything as is or walk away from a bad deal and buy a different car after filing – the choice is yours. Upsolve explains your options so you can make the decision that’s right for you.
This page is your home base for learning about what a bankruptcy filing means for your car.
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Can I Keep My Car If I File Chapter 7 Bankruptcy?
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated January 30, 2025
Filing for Chapter 7 bankruptcy doesn’t necessarily mean you’ll lose your car. If you’re current on payments and your vehicle’s value falls within your state’s exemption limits, you may be able to keep it. Some people also choose to “redeem” or “reaffirm” their car loan to keep their vehicle. Understanding your options can help you make the best choice for your financial situation.
Read More →Can I Buy a Car After Bankruptcy?
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated January 30, 2025
Yes, but it makes sense to wait as long as you can after receiving your discharge. You'll need to be careful and make certain that you’re getting a good deal.
Read More →Car Repossession: Everything You Need To Know
Written by Mae Koppes. Legally reviewed by Jonathan Petts
Updated April 9, 2025
Car repossession happens when a lender takes back a vehicle after missed loan payments. In many states, they can do this without warning or a court order. The lender will usually sell the car, and if the sale price doesn’t cover what you owe, you may still have to pay the difference. You have rights during repossession, including the ability to retrieve personal belongings and protections against wrongful actions. If you're at risk, options like negotiating with your lender, refinancing, or filing for bankruptcy may help you keep your car.
Read More →What Is a Reaffirmation Agreement and How Do You Use One?
Written by Attorney Jenni Klock Morel. Legally reviewed by Jonathan Petts
Updated January 30, 2025
People who file bankruptcy are often concerned about what's going to happen to their car. Signing a reaffirmation agreement is one option that lets you keep your car and continue making the payments, but it's not the only option and might not be the best option in your situation. Read on to learn about how reaffirmations work and factors to consider when deciding whether to sign a reaffirmation agreement.
Read More →Can Filing Bankruptcy Help With a Repossession?
Written by Attorney Paige Hooper. Legally reviewed by Jonathan Petts
Updated December 10, 2024
So long as your car hasn’t already been auctioned or sold, filing bankruptcy can help stop repossession. If you file Chapter 7, the automatic stay gives you time to negotiate new, more affordable loan terms with your car lender. It can also get rid of a deficiency judgment if your car is repossessed and sold. Filling Chapter 13 can help you reorganize your auto loan debt to get a more affordable monthly payment and spread out past-due payments over several years.
Read More →How To Redeem Your Car in Bankruptcy
Written by Attorney Paige Hooper. Legally reviewed by Jonathan Petts
Updated January 30, 2025
Redeeming your car debt in bankruptcy can make sense if the car is worth much less than the amount you owe on your car loan. Redemption allows you to pay the lender the value of the car, rather than the larger amount you owe. This article covers how redemption works, what’s required to redeem your car, the pros and cons of redemption, and the procedure for redeeming a car in bankruptcy.
Read More →How Do I Reaffirm My Car Loan?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated August 11, 2020
The 6-step process of reaffirming a car loan.
Read More →How can I surrender my car in Chapter 7 bankruptcy?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated April 12, 2022
"Surrendering" your car means that you give it back to the lender that gave you the loan to purchase it. If you surrender your car as part of your Chapter 7 bankruptcy, any debt that you owe on it will be eliminated when you receive your bankruptcy discharge.
Read More →Car Co-Owner vs. Co-Signer: What’s the difference?
Written by Jonathan Petts. Legally reviewed by Ben Jackson
Updated April 10, 2025
A co-signer on a car loan is obligated to pay the loan if the other person defaults on their payment obligation while a co-owner of a car has an ownership interest in the vehicle itself. This article explains how to properly disclose these relationships in your bankruptcy forms.
Read More →What Happens to the Co-Signer of a Car Loan in Bankruptcy?
Written by Mae Koppes. Legally reviewed by Jonathan Petts
Updated January 30, 2025
When you file for bankruptcy, your co-signer stays legally responsible for the co-signed debt, even if your obligation to repay it is discharged. In Chapter 7 bankruptcy, the lender can still pursue your co-signer if the car is surrendered or the borrower defaults on the loan. Options like reaffirmation or redemption may reduce your co-signer’s risk if payments continue. In Chapter 13 bankruptcy, the co-debtor stay may temporarily stop the lender from going after your co-signer, but this protection is lost if payments aren’t made.
Read More →How To Get a Reaffirmation Agreement in Chapter 7 Bankruptcy
Written by Attorney Paige Hooper. Legally reviewed by Jonathan Petts
Updated January 30, 2025
To keep your car during and after a Chapter 7 bankruptcy, you sometimes need to sign a reaffirmation agreement with the lender and have it approved by the bankruptcy court. This agreement is a contract that confirms you're committed to continue paying your car loan after bankruptcy. It comes with a risk: If you fall behind on your car payments after your bankruptcy, your car may be repossessed and you may be left to pay a deficiency balance.
Read More →Can I Discharge Tickets, Fines, and Tolls in Bankruptcy?
Written by Jonathan Petts. Legally reviewed by Ben Jackson
Updated January 30, 2025
It's not easy to discharge most tickets and government fines in bankruptcy. Though it depends on what the tickets or fine was assessed for, many tickets and fines are non-dischargeable debts. That means you have to repay them even if your bankruptcy case is successful in discharging other debts like credit card or medical bills. That said, filing Chapter 13 bankruptcy can be a good way to manage non-dischargeable fines and fees. It can also help you get your driver’s license reinstated if it’s been suspended due to unpaid fines.
Read More →Why can’t I login to my account to pay my car loan anymore?
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated January 30, 2025
After a bankruptcy filing, some creditors block you from logging in to your account. This becomes a problem if you want to keep your car and need to make your payment. Unfortunately, there isn’t much consistency among lenders on when and why they do it. They say it’s because they don’t want to violate the automatic stay. Unfortunately, what it really does is make it much harder for the filer to make their payment.
Read More →Do I Still Owe Money After My Car Is Repossessed?
Written by Attorney Amelia Niemi. Legally reviewed by Jonathan Petts
Updated December 13, 2024
Yes, you may still owe money after your car is repossessed. If the lender repossesses your car and sells it at auction for less than the amount you owe on your loan, you’ll be responsible for paying the remaining amount, called a deficiency balance. This can include additional fees like towing, storage, and auction costs. While repossession doesn’t erase your debt, options like negotiating with your lender or filing for Chapter 7 bankruptcy can help you manage or eliminate the remaining balance.
Read More →Can You Buy a Car During Chapter 7 Bankruptcy? What To Know About Auto Loans
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated March 26, 2025
You technically can buy a car during the Chapter 7 bankruptcy process, but that doesn’t mean it’s always the best idea. Lenders may see you as a higher risk, which can mean higher interest rates and less favorable loan terms. Many people find it easier to wait until after their discharge, when they may have more financing options. If buying a car during bankruptcy is necessary, comparing lenders and loan terms can help you make the best financial decision.
Read More →6 Things You Should Know About the Statement of Intentions
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated January 30, 2025
If you’re planning on filing a Chapter 7 bankruptcy and have a car loan or other secured debt, here are 6 things you should know about the Statement of Intentions.
Read More →What Is A Charge Off On A Car Loan?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated December 11, 2021
A charge-off on a car loan is when the creditor declares the debt uncollectible. The creditor can still collect the charged-off debt and you still owe it.
Read More →Filing Bankruptcy After a Car Accident
Written by Attorney Kassandra Kuehl. Legally reviewed by Jonathan Petts
Updated January 30, 2025
This guide will introduce you to the process of filing bankruptcy in the wake of a car accident so that you can make an informed decision about your legal and financial options at this time.
Read More →What if I Have a Car Accident During My Chapter 7 Bankruptcy Case?
Written by Attorney Paige Hooper. Legally reviewed by Jonathan Petts
Updated January 30, 2025
The average Chapter 7 bankruptcy only takes a few months before you get a fresh start. But even in that time, the unforeseeable can sometimes happen — such as a car accident. If you’re in a car accident, you could end up receiving money, or you could have a claim against another party. On the other hand, you could end up owing money or having claims filed against you. Either scenario could affect an ongoing Chapter 7 bankruptcy. This article discusses each of those potential situations, the possible consequences for your Chapter 7 case, and your options for making the most of your bankruptcy in either scenario.
Read More →How Does The Repo Man Find Your Car?
Written by Attorney Thomas J. Pearson. Legally reviewed by Jonathan Petts
Updated December 13, 2024
Repossession happens when a lender takes back a car because the borrower has fallen behind on payments. Repo agents use personal details, social media, and tools like GPS trackers and license plate scanners to find vehicles. They can legally repossess cars from public spaces but cannot enter locked or gated private property. After repossession, the lender typically sells the car, and you may still owe a deficiency balance if the sale doesn’t cover the remaining loan and fees.
Read More →Are There Any Advantages to a Voluntary Repossession?
Written by Attorney Thomas J. Pearson. Legally reviewed by Jonathan Petts
Updated January 22, 2025
Voluntary repossession is when you return your car to the lender because you can no longer afford the payments. Sometimes voluntarily returning your car is better than waiting for the lender to repossess the car, as it may reduce repossession costs, give you more control over the process, and help you avoid the embarrassment of an unexpected repossession. However, it may still be reported as a negative mark on your credit report and hurt your credit score. Also, you may be responsible for any remaining balance on the loan after the car is sold.
Read More →Salvage Title Cars: Everything You Need To Know
Written by Mark P. Cussen, CMFC. Legally reviewed by Jonathan Petts
Updated January 30, 2025
A salvage title car comes with its own set of risks and limitations. But if you know the car’s history and the person who is selling it to you, a salvage title car may be a good deal in some cases. This article will discuss the pros and cons of buying a car with a salvage title, how to identify, finance, and insure a car with a salvage title, and what steps you can take to get a rebuilt title issued for your car.
Read More →What Is a Buy Here, Pay Here Dealership & How Does It Work?
Written by Mark P. Cussen, CMFC. Legally reviewed by Jonathan Petts
Updated January 30, 2025
If you’re shopping for a car and you have bad credit, you may have trouble getting financing. You can try to get a personal loan from a local bank or a friend or family member. But if that doesn't work, you may have to go to a buy here, pay here (BHPH) dealership. These dealers offer in-house financing to people with bad credit. If you really need a car, they can help you get one. But there are also downsides to financing with them. Read on to learn more about the pros and cons of buy here, pay here dealerships.
Read More →Ohio Vehicle Repossession Laws
Written by Mark P. Cussen, CMFC. Legally reviewed by Jonathan Petts
Updated January 24, 2025
If you take out a loan to buy a vehicle and you become unable to make the payments, then you run the risk of having your vehicle repossessed. Vehicle repossession laws are largely the same in all states, but some details governing borrowers’ and lenders’ rights differ from one state to another. Here we will examine Ohio’s laws and what you need to know if you live in Ohio and can’t make your payment or have already experienced vehicle repossession.
Read More →Can’t Afford Your Car Payment? Here Are Your Options
Written by Curtis Lee, JD. Legally reviewed by Jonathan Petts
Updated February 18, 2025
If you can’t afford your car payment, you have options to either keep your car or let it go. You may be able to refinance your loan, work with your lender on a hardship program, or use bankruptcy to free up money for payments. If keeping the car isn’t feasible, surrendering it, selling it, or using bankruptcy to eliminate remaining loan balances are all options to consider. This article explains these strategies and their pros and cons to help you decide the best path forward.
Read More →Car Liens: What They Mean and How To Check for and Remove Them
Written by Mae Koppes. Legally reviewed by Jonathan Petts
Updated March 25, 2025
A car lien is a legal claim a lender has on a vehicle until the loan is fully paid off. If you finance a car, the lender places a lien on the title, giving them the right to repossess the car if you don’t make payments. The lien stays on the title until the lender releases it, which typically happens after the final loan payment. You can check for a lien by reviewing the title, getting a vehicle history report, or searching the DMV database. If you’re buying or selling a car with a lien, you’ll need to take extra steps to ensure the lien is properly removed before transferring ownership.
Read More →What Is a Good Credit Score for Buying a Car?
Written by Attorney Eric Hansen.
Updated January 30, 2025
To get an auto loan with a good interest rate and manageable monthly payments that fit your budget, you’ll need a decent credit score. That begs the question, what is a good credit score for buying a car? Generally, you’ll need a FICO credit score that’s 500 or higher, but to get better terms and a better interest rate, you’ll want a credit score that’s higher than 660. This article will explain credit scores and what to do when purchasing a car with bad credit. We’ll also touch on how to improve your credit score and other helpful information on financing your auto loan.
Read More →How To Get Out of a Car Lease Early (Without a Big Penalty)
Written by Mae Koppes. Legally reviewed by Attorney Andrea Wimmer
Updated April 9, 2025
Getting out of a car lease early can be expensive, but there are ways to reduce or avoid penalties. Common options include transferring the lease to someone else, buying out the lease and selling the car, trading it in for a different vehicle, or requesting lower or deferred payments from your lender. Each option has pros, cons, and costs, so it’s important to compare them based on your financial situation and needs. Lease transfers are often the most affordable choice if your leasing company allows them. Lease buyouts can work well if the car’s market value is higher than the payoff amount. No matter which route you’re considering, reviewing your lease agreement and contacting your lender can help you make an informed decision.
Read More →Can You Return a Car You Just Purchased to the Dealership?
Written by Attorney Aan Malahia Chaudhry. Legally reviewed by Jonathan Petts
Updated February 19, 2025
In general, car dealerships don’t take returns or offer return policies for purchased vehicles. If the deal was legal and truthful, there are no federal laws requiring dealerships to accept return on car purchases. There are a few exceptions, including some that are your rights as a consumer.
Read More →How To Get Out of a Car Title Loan Without Losing Your Car
Written by Chiara King. Legally reviewed by Jonathan Petts
Updated April 10, 2025
Car title loans offer quick cash by using your car as collateral, but their high interest rates and short repayment terms often lead to financial strain and even car repossession. If you’re struggling with a title loan, there are several ways to get out of it without losing your car, including paying off the loan with creative strategies, refinancing with a personal or payday alternative loan, or negotiating new terms with the lender. You can also seek guidance from an accredited credit counselor or explore bankruptcy as a potential solution. Chapter 7 bankruptcy may discharge the loan but often requires giving up the car, while Chapter 13 can help you keep your vehicle by reorganizing payments. Each option has pros and cons, so understanding your rights and exploring all alternatives can help you make the best decision for your situation.
Read More →Car Title Loans: Advantages, Disadvantages, & Alternatives
Written by Chiara King.
Updated January 14, 2025
Car title loans are a fast and easy way to get cash, but they should be used only as a last resort. These loans are risky because their short loan terms and high APRs make them difficult to pay back, which increases your risk of repossession.
Read More →What Are the Effects of an Auto Loan Default?
Written by Attorney Eric Hansen. Legally reviewed by Jonathan Petts
Updated January 30, 2025
If you’re struggling to make your car payment on time, you’re probably already feeling stress and frustration. Once you’re behind on payments you’re considered delinquent and your credit score will take a hit. Falling further behind moves you into default on your auto loan, which will come with even more serious consequences.
Read More →The Pitfalls of Leasing a Car When You Have Bad Credit
Written by Attorney Eric Hansen.
Updated January 30, 2025
If you need a car but you don’t want to purchase one outright, leasing may be an attractive option. It gives you flexibility and package options without the maintenance hassle of car ownership. But if you have bad credit, it may be difficult to get approved for a car lease. And if you are approved, it may be more expensive. This article outlines how your credit score plays into the car leasing process, how to increase your chances of being approved for a lease, and other options you have besides leasing.
Read More →What Happens if a Mechanic Puts a Lien on Your Financed Car?
Written by Mae Koppes. Legally reviewed by Attorney Paige Hooper
Updated March 13, 2025
A mechanic’s lien is a legal claim that allows a mechanic or other service provider to hold or sell your car if you don’t pay for repairs, towing, or storage. In most states, the mechanic can keep the vehicle until the debt is paid, and in some cases, they can sell it to recover what they’re owed. This lien can still apply even if you’re making loan payments on the car.
Read More →Upside Down Car Loan: What It Means and How To Get Out of One
Written by Mae Koppes. Legally reviewed by Jonathan Petts
Updated April 9, 2025
When you owe more on your car loan than the car is worth, you're upside down on the loan. This is also called having negative equity or being underwater. It can create financial stress if your car is totaled, stolen, or needs major repairs. Many people find themselves in this situation due to long loan terms, high interest rates, small down payments, or fast depreciation. If you're upside down on your car loan, you may be able to refinance, make extra payments, trade in the car, or sell it and cover the difference.
Read More →Can You Sell a Car That Has a Lien on the Title?
Written by Lawyer John Coble. Legally reviewed by Jonathan Petts
Updated January 30, 2025
If you want to sell a car that has a lien on the title, you’ll need to take a few extra steps. If you trade your car in with a dealer, they’ll handle the process. If you sell to a private party, you’ll need to handle getting the lien released. You can do this at the lender’s office or hire an escrow company to help. If you have negative equity in the car, you’ll need to be able to pay it off to get the lien released.
Read More →Buying a Car With No Credit History: What You Need To Know
Written by Attorney Eric Hansen.
Updated January 30, 2025
If you don’t have a credit history, you can still buy a car, but it will be more difficult. Without a credit history, it’s hard for lenders to know how risky you are as a borrower. You may be offered loans with higher interest rates. Some financial institutions specialize in giving loans to borrowers without a credit history, so it's worth shopping around.
Read More →Can You Sell a Car That Has a Lien on the Title?
Written by Lawyer John Coble.
Updated December 12, 2021
If you want to sell a car that has a lien on the title, you’ll need to take a few extra steps. If you trade your car in with a dealer, they’ll handle the process. If you sell to a private party, you’ll need to handle getting the lien released. You can do this at the lender’s office or hire an escrow company to help. If you have negative equity in the car, you’ll need to be able to pay it off to get the lien released.
Read More →What Are Guaranteed Auto Loans and How Do They Work?
Written by Attorney Paige Hooper.
Updated November 29, 2021
Guaranteed auto financing allows people to buy cars even if they don’t qualify for traditional car loans. Dealerships will look at your current income and employment to determine whether you qualify. You may need to meet minimum income requirements and offer a down payment. These auto loans typically have high interest rates and fees. Shop around and read the fine print carefully to be sure you get the best terms.
Read More →Can You Get a Car Loan While You’re on Unemployment?
Written by Attorney Eric Hansen. Legally reviewed by Jonathan Petts
Updated January 30, 2025
If you’ve lost your job and you’re collecting unemployment, you may still be able to finance a car, but it will be harder to get approved for a loan. Unemployment isn’t a long-term, stable income source, which lenders want to see. They’ll also look at your credit history and score and income sources when you apply for the loan.
Read More →Rebuilt Title Car Loans Explained
Written by Lawyer John Coble. Legally reviewed by Jonathan Petts
Updated January 28, 2025
When a car's title is classified as a "salvage" title, this means that the vehicle has either been severely damaged or totaled. If the vehicle is repaired, the salvage title classification may shift to a "rebuilt" title. Buyers should be cautious when purchasing a vehicle with a rebuilt title because the car or truck may cost more to insure and the purchase may be harder to finance. Buying a vehicle with a salvage title is a process additionally burdened by the costs of repairing the damaged car.
Read More →Selling a Car With a Loan: Processes and Options
Written by Chiara King. Legally reviewed by Jonathan Petts
Updated January 30, 2025
Before a car that is not yet fully paid for can be sold, the lender's legal claim to the vehicle must be cleared. Paying off the remainder of the loan balance will clear that claim. A prepayment penalty may also become due if the loan is paid off early. If paying the balance remainder isn't an option, the borrower can speak with the lender about transferring ownership. If the lender is also an auto dealer, a trade-in opportunity may be available.
Read More →What Are the Pros and Cons of a Lease-To-Own Car?
Written by Mae Koppes. Legally reviewed by Attorney Andrea Wimmer
Updated March 3, 2025
A lease-to-own (or rent-to-own) program allows borrowers to make installment payments on a vehicle over a period of time determined in the lease. Once all the car payments have been made, the borrower (the lessee) assumes ownership of the vehicle. These arrangements can particularly benefit borrowers who have bad credit and don’t qualify for traditional leases or car loans. That said, these agreements tend to be expensive, so it’s important to understand the terms of the lease-to-own contract before you enter into one.
Read More →Refinancing a Car Loan With Bad Credit
Written by Krishna Patel.
Updated January 30, 2025
Having bad credit doesn’t mean you can’t get an auto loan or refinance your current auto loan to try to get better terms. Refinancing your auto loan can help you get a lower interest rate, lower monthly payments, and save money on the total cost of your loan. This article will talk about how refinancing works, the pros and cons of refinancing your auto loan, and some of the factors you should consider when shopping for a refinance loan.
Read More →Should You Surrender an Unwanted Car in Bankruptcy?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated October 27, 2023
If you’re financing a car with a car loan, you’ll need to decide how to deal with it when you file bankruptcy. If the payments are too high or you simply want to get rid of the car and the loan, you can surrender the vehicle back to the lender and have the debt discharged as part of your bankruptcy case. Often, the lender will pick up the car or schedule a mutually agreeable place to meet. If they don’t, you may need to seek legal help.
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