If you continue to make your payments you will NOT loose your car. You will need to re-afirm the debt with the loan company. This is basically an agrement that you will continue to pay them as agreed. If you fail to continue to make the payments then you will not be allowed to keep the car.
There is also an process known as redemption. This is when you have filed for bankruptcy, you can buy the car at the current value. This is usually much less than your loan value. However, you must come up with this payment in a single payment.
The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.
Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.
Usually you don't as most courts will consider it a necessity. If you still owe on it, the note will be included in the Bankruptcy plan. If you own it, you will need to ask for it to be included as an exception to the assets that will be liquidated. Bankruptcy laws vary by state, so if you have an expensive car, the court may say sell it and get a cheaper one.
If you file chap 7 you can include your car and have them take it...or you can reaffirm on the debt and keep it. If you reaffirm on the debt you owe what you owed as if you never declared bankruptcy.
Here is the bigger problem...if you allow them to take the car (assuming you will go get a cheaper on) you cannot get a loan during the bankruptcy to get another car...if you do the judge will not sign off on the bankruptcy. What I did was allow them to take my cars and my dad got me 2 new ones in his name. The judge specifically asked me how I planned on getting to and from work with no cars and when I told him my dad bought me a new car he gave me a lecture about dragging my parents into my financial problems!
It depends on what type of bankruptcy you file. Chapter 13, is a wage earner plan where you keep everything and pay the court a set $ amount each month. Chapter 7 you lose your secured debts (your car), but you don't owe any money.
I went through this several years ago and reaffirmed on my car that was financed with Ford. I continued to make the payments and everything was fine.
If you do this, you need to call your lender and request that they continue reporting to the credit bureaus because once you file, every debt must be included, so even if you reaffirm it will show as included in bankruptcy unless you call and request that they continue to report.
I had another car financed with Ford that was my ex-wife's. I did not reaffirm on this loan since we were getting a divorce, I did make arrangement with Ford to let her keep the vehicle as long as she made the payments. 1-years later she let it go back, but since it was already reported in my bankruptcy it did not effect me or my score.
Depends on what type of bankruptcy you file. If you file a Chapter 7 with your car included, they will take it. If you file a Chapter 13 repayment plan, you keep it.
. If your not making payments on it no, if you are making payments on it. You will lose it, only if you quit making the payments on it. They can't take from you because of bankruptcy.
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If you continue to make your payments you will NOT loose your car. You will need to re-afirm the debt with the loan company. This is basically an agrement that you will continue to pay them as agreed. If you fail to continue to make the payments then you will not be allowed to keep the car.
There is also an process known as redemption. This is when you have filed for bankruptcy, you can buy the car at the current value. This is usually much less than your loan value. However, you must come up with this payment in a single payment.
you will lose all your assets:
The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.
Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.
http://www.get-out-of-the-debt-trap.com/category/I...
Usually you don't as most courts will consider it a necessity. If you still owe on it, the note will be included in the Bankruptcy plan. If you own it, you will need to ask for it to be included as an exception to the assets that will be liquidated. Bankruptcy laws vary by state, so if you have an expensive car, the court may say sell it and get a cheaper one.
If you file chap 7 you can include your car and have them take it...or you can reaffirm on the debt and keep it. If you reaffirm on the debt you owe what you owed as if you never declared bankruptcy.
Here is the bigger problem...if you allow them to take the car (assuming you will go get a cheaper on) you cannot get a loan during the bankruptcy to get another car...if you do the judge will not sign off on the bankruptcy. What I did was allow them to take my cars and my dad got me 2 new ones in his name. The judge specifically asked me how I planned on getting to and from work with no cars and when I told him my dad bought me a new car he gave me a lecture about dragging my parents into my financial problems!
It depends on what type of bankruptcy you file. Chapter 13, is a wage earner plan where you keep everything and pay the court a set $ amount each month. Chapter 7 you lose your secured debts (your car), but you don't owe any money.
OC1999 is correct.
I went through this several years ago and reaffirmed on my car that was financed with Ford. I continued to make the payments and everything was fine.
If you do this, you need to call your lender and request that they continue reporting to the credit bureaus because once you file, every debt must be included, so even if you reaffirm it will show as included in bankruptcy unless you call and request that they continue to report.
I had another car financed with Ford that was my ex-wife's. I did not reaffirm on this loan since we were getting a divorce, I did make arrangement with Ford to let her keep the vehicle as long as she made the payments. 1-years later she let it go back, but since it was already reported in my bankruptcy it did not effect me or my score.
Depends on what type of bankruptcy you file. If you file a Chapter 7 with your car included, they will take it. If you file a Chapter 13 repayment plan, you keep it.
. If your not making payments on it no, if you are making payments on it. You will lose it, only if you quit making the payments on it. They can't take from you because of bankruptcy.