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

3,327 families filed bankruptcy using Upsolve.

Written by Kristin Turner.  
Updated August 19, 2019

A nonprofit web app that helps you file bankruptcy for free.
  • We've helped over 2,000 families each clear on average $52,556 of debt.
  • Our users often file within 10 days of starting.
  • Our award winning nonprofit's help is 100% free.

"Redeeming" your car means that you buy it from the lender that you financed it with for the fair market value of the car in one lump sum.

If you would like to redeem your car, you must:

  1. let the bankruptcy court and the lender know on your "Statement of Intention" forms,

  2. file a motion with the court proving the value of the car after you file your bankruptcy, and if the motion is approved, pay the lender the redemption value (fair market value) of your car and have the title released to you.

  3. the rest of the balanced owed is dischargeable

Your approved redemption agreement will specify how much time you have to pay the lender (usually 90 days). Failure to pay on time may result in your car being repossessed and/or your bankruptcy being denied.

If you would like to learn more about redeeming your car during bankruptcy, check out this article. What you choose to do with your car in your bankruptcy is entirely up to you, and a choice that made sense for someone else may not make sense for you. We at Upsolve do not recommend any particular way forward, but we hope that this article and others we have written on the topic of secured debt gives you the tools you need to make an informed decision.

It's easy to get help

Choose one of the options below to get assistance with your bankruptcy:
Page 1Created with Sketch.

Free Web App

Take our bankruptcy screener to see if you're a fit for Upsolve's free web app!

3,327 families filed with Upsolve ☆

Private Attorney

Get a free bankruptcy evaluation from an independent local law firm.

Questions about bankruptcy?

Research and understand your options with our articles and guides.

Go to Learning Center →

Questions about Upsolve?

Read Support Articles →

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.


Considering Bankruptcy?

Are you interested in our free bankruptcy services, talking to someone about alternatives to bankruptcy, or a free consultation with a paid attorney?

Need bankruptcy help?