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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Should I File For Bankruptcy After A Repo in 2020?

Filing for bankruptcy after a car repo can get rid of any remaining debts that you have for your car.

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How to redeem your car?

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.  

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What does it mean to surrender your car in bankruptcy?

If you surrender your car as part of a Chapter 7 bankruptcy, your car debt is erased by the bankruptcy discharge.

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What To Do If You Changed Your Mind About Keeping Your Car

Did you originally plan on keeping your car but changed your mind? That is totally ok! Here is what you need to do to make sure you’re protected, depending on where you are in the process.

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If I surrender my vehicle, will I be responsible for any balance owed?

No. Even if the car is sold for much less than what you owe on the loan, your personal liability to pay the loan is discharged.

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Do I own my vehicle? What percentage of it do I own?

Whether or not you own your vehicle depends on whether you purchased it using a loan or leased it from a dealer or other agency.

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Why doesn't my car appear on my exemptions list?

There are a few reasons that your car(s) might not be listed on your exemptions list.

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How Do I Reaffirm My Car Loan?

The 6-step process of reaffirming a car loan.

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Can I buy a car before or after I file for bankruptcy?

There is nothing that prohibits debtors from buying a car before filing or after filing. Whether it makes sense to buy now or after filing is a personal decision that depends in part on whether a debtor has good credit now, that will deteriorate after filing or bad credit that will improve after filing.

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How can I surrender my car in Chapter 7 bankruptcy?

"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.

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I want to redeem my car. When do I do it?

"Redeeming" your car means that you buy it from the lender that you financed it with for the fair market value of the car, paid to the lender in one lump sum. The rest of your loan is discharged.

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Can I Keep My Car If I File Chapter 7 Bankruptcy in 2020?

Most people can keep their car and get debt relief by filing bankruptcy. Of course, if you need a fresh start but you need your car just as much, you probably wonder about how this works in Chapter 7 bankruptcy. Keep reading to learn what a bankruptcy filing means for your car.

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Can I Buy A Car After Bankruptcy in 2020?

Buying a car after completing a Chapter 7 is definitely possible and not uncommon. The longer that you can wait to make a large purchase after receiving your discharge the better off you will be.

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What To Do If Your Car Lender Won't Talk To You After Filing

It is not uncommon to have a lender react this way after a bankruptcy filing. When you file a bankruptcy an automatic stay goes into effect, which means that creditors cannot continue in any collection efforts while the bankruptcy is ongoing.

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What is the difference between a co-signer and co-owner of a car?

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.

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What happens to the co-signer of a car in bankruptcy in 2020?

If you have bought a car and your loan has a co-signer, you may wonder what will happen to the co-signer when you file bankruptcy. This article explains your options and how they'll affect your co-signer.

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How to Get a Reaffirmation Agreement in Chapter 7 Bankruptcy?

A reaffirmation agreement is a binding contract, and as such you should give careful consideration to the costs and benefits prior to entering into one.

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Can bankruptcy help me get my car back after a repossession?

Filing bankruptcy may allow you to get a car back after it has been repossessed. This article explores how this might work in Chapter 7 vs. Chapter 13 bankruptcy and why it may not always be a good idea to try.

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Can bankruptcy help me get my car back after repossession?

If your car has been repossessed, you’re probably stressed out and worried. If you have fallen behind on your payments and are wondering if bankruptcy can help get your vehicle back, the simple answer is yes, though it doesn’t always make sense to do so. If your car has been repossessed, [bankruptcy can help](https://upsolve.org/learn/should-i-file-bankruptcy-after-repo/ "bankruptcy can help you") you get it back as long as you quickly take action to recover your vehicle.

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Can I Discharge Tickets, Fines & Tolls in Bankruptcy in 2020?

If you have any traffic tickets or court fines, then filing bankruptcy may help you get out of debt. You will first need to determine which Chapter of bankruptcy will be most helpful in your situation. At Upsolve we provide the tools you need to file a Chapter 7 bankruptcy without the help of a bankruptcy lawyer. If you feel more comfortable using a bankruptcy lawyer we can help you find one.

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Why do reaffirmation agreements exist? 

If a debt is reaffirmed, the lender can repossess the car if you default on payments AND sue you for the balance left on the loan. Find out why reaffirmations exist.

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How to Amend your Statement of Intentions

The Statement of Intentions is the bankruptcy form that you filed with the court to let your creditors know what you want to do with your secured debts, most often a car loan. If you have changed your mind and need to amend (update) your Statement of Intentions, follow the steps outlined in this article.

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What Happens If I Have A Car Accident After Filing Bankruptcy?

While a property settlement from the insurance company may have to be paid to the trustee, any personal injury settlement you’re entitled to as a result of the accident is yours to keep. This article will explore what steps to take if you get in a car accident after filing a Chapter 7 bankruptcy.

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Why can’t I login to my account to pay my car loan anymore?

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. 

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Reaffirmation Agreements

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.

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Repossession After Bankruptcy - What You Should Know in 2020

You have options for what to do with a car loan when filing a Chapter 7 case, including reaffirmation, redemption, or surrender. Entering into a reaffirmation agreement can lead to new debt problems if you default on your car loan payments after bankruptcy. The purpose of filing Chapter 7 bankruptcy is to put you in a better financial situation than before filing and give you a fresh start. Keep reading to find out what to expect if your car is repossessed after filing Chapter 7 bankruptcy.

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Do I still owe after my car is repossessed in 2020?

Unfortunately, having your car repossessed isn’t the end of the road on your car loan. Many Americans owe more on their car than it is worth and their loan is “underwater.” Here’s what you need to know about vehicle repossession and how Chapter 7 bankruptcy can offer some debt relief.

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Can I buy or refinance a car during Chapter 7 bankruptcy?

Yes, you can buy a new (to you) car while your Chapter 7 bankruptcy case is pending. If possible, wait until your discharge has been granted as that will give you more negotiating power with the bank.

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Confused After A Reaffirmation Hearing?

Reaffirmation Hearings: An overview of possible outcomes and what it means for you.

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Car Repossession 101

This article will answer some common questions about vehicle repossession, including why it happens, what the steps are in this process, and how you can get your car back, after it’s been repossessed.

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6 things you should to know about the Statement of Intentions

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.

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What Is A Charge Off On A Car Loan? (2020)

A charge off on a car loan is debt that a creditor declares uncollectible. An auto loan charge off hurts your credit history and lowers your credit score. The charged off debt could stay on your credit report for seven years and drop your credit score by 100 points. The creditor can still collect the charged-off debt, and the person that took out the auto loan still owes the charged-off debt. Car loan debt feels like it will last forever, but even a car loan charge off can be discharged through bankruptcy.

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Filing Bankruptcy After a Car Accident

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.

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What If I Have a Car Accident During My Chapter 7 Bankruptcy Case?

Getting into a car accident during a Chapter 7 bankruptcy can make an already stressful situation even more stressful. This article will discuss those concerns and what happens after a car accident after filing bankruptcy.

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What Do I Do About My Car Payment That Is Way Too High?

If you're like most people, you had to take out a loan to buy your car. Car loan payments usually rival health insurance, student loans, and housing payments for the highest expenses. This article will cover your options to reduce your car payment with or without bankruptcy.

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Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Spun out of Harvard Law School, our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations. It's one of the greatest civil rights injustices of our time that low-income families can’t access their basic rights when they can’t afford to pay for help. Combining direct services and advocacy, we’re fighting this injustice.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.

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