While personal bankruptcy has helped millions of Americans escape from underneath loads of debt, there remain questions about how it works. Some of the most common questions are related to automobiles.
First, personal bankruptcy may be able to save your car from repossession. In addition, discharging your debts through personal bankruptcy might make you a more attractive candidate for a car loan later down the road.
In order to learn more about securing an auto bankruptcy loan, or how bankruptcy treats overdue car payments, fill out the quick form below for a free, no-obligation consultation with a bankruptcy attorney.
One of the most common concerns of personal bankruptcy filers is whether bankruptcy will help them keep their car, especially if they've fallen behind on their auto loan payments.
Fortunately, Chapter 13 bankruptcy may offer an opportunity to do just this. Here's how it works:
Another common bankruptcy option, Chapter 7 bankruptcy, allows filers to receive a quick discharge of unsecured debts. State laws determine whether you may be able to keep your car and other possessions in a Chapter 7 case. Connect with a local attorney to determine if Chapter 7 is right for you.
After filing for bankruptcy, you'll likely want to begin repairing your credit. One way to do this is to take out a reasonable auto loan and make timely payments on it.
Here are a few things to remember if you take out an auto loan after bankruptcy:
Remember: rebuilding your credit score after filing for bankruptcy is an important task. One of the best ways to prove to lenders that you are credit-worthy is to pay off your loans on time. Achieve this by making sound decisions when considering an auto loan.