Dealing with auto loan debt in bankruptcy is a concern shared by many people who are struggling with debt.
Whether you are looking to eliminate auto loan debt through bankruptcy or exploring options for keeping your car through bankruptcy, you should seek advice from an experienced bankruptcy attorney.
Contact the Wright Law Offices to schedule a free consultation with a Phoenix auto loan bankruptcy lawyer.
What Happens to Car Loans in Bankruptcy?
There are a number of options available for individuals with auto loans considering bankruptcy: surrendering the car to the bank and discharging the debt, seeking an auto loan reaffirmation and repaying the remaining debt, refinancing the car loan to its current value and buying out the secured creditor, or filing Chapter 13 bankruptcy.
Keeping Your Car Through Chapter 7 Bankruptcy
"Can I keep my car if I file bankruptcy?" This is one of the most common questions asked by people considering bankruptcy. The truth is, it may be possible for people to keep their cars even after filing bankruptcy depending on the amount of equity in the vehicle and other factors.
If you want to keep your car through bankruptcy instead of seeking to eliminate an auto loan, we can help you determine if you qualify for an auto loan reaffirmation. This would allow you to keep your car and continue making payments after you file Chapter 7 bankruptcy.
Auto "Cramdowns" in Chapter 13 Bankruptcy
When the owner of a car owes more money than the car is worth, he or she may be able to reduce the amount owed on the car through a procedure known as a "cramdown." This option is available only in Chapter 13 bankruptcy. Certain requirements must be met to qualify for a vehicle cramdown, but if met, the amount you owe on your car can be significantly reduced. Contact a Phoenix bankruptcy lawyer from our firm to learn more.
Contact a Tempe Chapter 13 Bankruptcy Attorney
Schedule a free consultation with a Phoenix bankruptcy attorney to learn more about your options for eliminating auto loan debt. Call 480-269-9707 today.
