If I file for personal bankruptcy, will it affect my car loan?

If you file for chapter 7 bankruptcy, depending on the status of your car loan, will determine if it is effected by the filing of chapter 7 bankruptcy. If the account is up to date, and you wished to keep the car, chapter 7 bankruptcy will not affect this. For most of my clients, I tell them to write the car off in the bankruptcy and keep making payments, this way if you lose your job you can just walk away from the car or you can simply keep paying it and keep the car. You may choose to reaffirm the debt, but unless the bank is going to give you better terms to your loan, such as lowering your interest, I never suggest my clients reaffirm any of their secured debts. Although reaffirming the debt, is a good way for you to get a lower interest rate on your car loan if the bank is willing to work with you. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob, #student, #loans, #education, #IRS, #taxes