Depending on your car’s value, it may or may not be possible to keep your vehicle if you file for bankruptcy. However, there are some tricks to keep it, if you have the right type of bankruptcy. In some cases, your lender will agree to a redemption deal, allowing you to keep your vehicle. These aren’t always easy to negotiate, but they are a good option if you are having trouble making your monthly car payments.
If you own your vehicle outright, you can use it as collateral for a bankruptcy redemption loan. Most lenders require you to pay the fair market value of the car, although they will allow you to pay off the remainder of your loan. If your car is repossessed by your lender, you can redeem it in the same way. The only downside is that the interest rates on these kinds of loans are very high. You can also get a loan from a friend or family member.
Whether or not you can keep your vehicle after filing for bankruptcy is dependent on the state you live in and the type of bankruptcy you choose. If you have an expensive car loan, you will want to return the car to your lender before you file for bankruptcy.
If you have no loan, you’ll have to use income or borrowing from friends and family to maintain the vehicle. There are no guarantees that you will retain your car after filing for bankruptcy, but it’s better to have it than not. It can be difficult to get financing for your car after filing for bankruptcy, but you can still make car payments if you have a friend willing to finance you.
You can find out the true market value of your car by using the Kelley Blue Book or the National Auto Dealers Association. In some states, you’ll be able to take advantage of a federal bankruptcy exemption. If you have a leased vehicle, you’ll need to figure out the mileage limit for your lease. You may be able to redeem your car for the same amount that you paid for the lease, if you’re willing to pay the difference.
If you have an expensive car loan or a high interest rate, you can’t expect to be able to save your car after filing for bankruptcy. You’ll have to find a way to bring your payments up to date. It’s a good idea to take a few weeks off from driving your car until you’re able to find a new payment plan.
The best way to know whether you can keep your car after bankruptcy is to speak with a reputable bankruptcy lawyer. They will be able to help you weigh your options and determine the best course of action. They can also recommend which types of bankruptcy might be the best fit for your situation. For example, if you’re filing for Chapter 13 bankruptcy, you’ll need to show that you have the means to pay off your car loan before you’re allowed to keep your car.