COVID-19 Update: We are open! However for your safety and ours during this time, we have suspended all in-office appointments. We will be consulting and handling all business via phone, email, and/or video conference. The courts have also suspended in-person hearings and will be handling everything telephonically. If you need us, whether as a new client or a current client with questions and concerns, please call or email us now. We are here to help you through this difficult time any way that we possibly can.

Must I be current on my car to file chapter 7 bankruptcy?

VehiclesYes and No.  In most cases as long as you are up to date on your vehicle payments you can “reaffirm” the debt and keep your vehicle. The finance company has to agree to allow you to keep the vehicle and they will always agree if you are current.

If you are not current, the bankruptcy filing protects the vehicle from being repossessed and this could give you the time you need to get caught up. Most finance companies do not want the vehicle back, so if you are a behind they will give you a chance to catch up or they can redo your payments. The most important thing is to file the bankruptcy as soon as possible so they don’t repossess the vehicle. They hardly ever negotiate before you file the bankruptcy because they don’t believe you will actually file. After you file and they are faced with getting no money and maybe having to take the vehicle back, they can be more lenient and easier to deal with.

 

Contact Information