QUESTION
If I go bankrupt because of students loans, will I lose my car that I am making payments on?
Asked on May 23rd, 2012 on Bankruptcy - California
More details to this question:
I am really behind on my students loan and am worry that I will lose my car. I have never miss a payment on my car plus it is my only way around.
16 ANSWERS
No.
Answered on Jun 14th, 2013 at 2:14 AM
Bankruptcy generally does not Discharge student loans, hardship discharges on student loans are rare and hard to obtain.
Answered on Jun 07th, 2012 at 2:22 PM
Bankruptcy Attorney serving Jacksonville, FL
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Robert L. Peters, Attorney
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Make sure to consult an attorney regarding the student loans. Most student loans are not dischargeable. It is difficult to discharge student loans but is possible under certain circumstances. You would have to prove to the court an undue hardship for the entire remainder of the student loan term. This would require an additional lawsuit within your bankruptcy case called an adversary proceeding to determine if your student loans would be dischargeable. In any event, keep paying your car payments and the student loan scenario should have no affect on keeping your car.
Answered on Jun 06th, 2012 at 9:12 PM
If we assume that your equity in the car does not exceed the exempt amount, then no. You will not lose your car as long as you continue to make the contract payments.
Answered on Jun 05th, 2012 at 5:49 PM
First, you cannot discharge student loans in a Chapter 7 bankruptcy. It would be foolish to file a Chapter 7 bankruptcy to try and remove student loans. There used to be certain loopholes. They no longer exist. The only way to get out of student loans is if you have a severe in extreme hardship. This threshold is almost impossible to reach. If you are trying to keep your car you can file a reaffirmation agreement. if you hire an attorney with experience in bankruptcy law they will tell you all of this. If you try to file without an attorney you are very foolish.
Answered on Jun 05th, 2012 at 3:57 PM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Barbara A. Fontaine
The original content and subject should not be modified, otherwise your answer will not be valid. Ordinarily you cannot discharge student loans by bankruptcy, so unless you have lots of other debt, bankruptcy would not help. You can usually keep your car if you reaffirm the loan and the court finds that you can afford to reaffirm. If it is just the car and student loans, do not declare bankruptcy. If more, consult an attorney.
Answered on Jun 05th, 2012 at 11:34 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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In Texas, your car is exempt from the bankruptcy estate as long as you reaffirm the debt and continue to make your car payments.
Answered on May 30th, 2012 at 4:48 PM
Glen Edward Ashman
Bankruptcy does not eliminate student loans. Depending on what your attorney files, you may or may not keep a car.
Answered on May 30th, 2012 at 2:20 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You will not lose your car unless you stop making the payments. You basically can't go bankrupt on student loans. Keep the payments up on the car.
Answered on May 30th, 2012 at 12:38 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally student loans are not dischargable and therefore bankruptcy will probably offer you little relief. There is a hardship exception on the student loans but it is difficult to qualify for. For you own good see a competent bankruptcy attorney before you do anything and possibly make a grave mistake.
Answered on May 29th, 2012 at 8:49 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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You can generally keep your car in bankruptcy as long as you continue to make your monthly payments on it.
Answered on May 29th, 2012 at 8:18 PM
Bankruptcy Attorney serving Columbus, OH
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The Needleman Law Office
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Typically student loan companies will pursue your tax refund if possible. They could sue you and ultimately win, and haul you in to court for a Judgment Debtor Exam. This is when the student loan company can question you about all of your assets in court. I have never had it happen to anyone in 21 years. If your car has a lien to a bank, and there is no equity in your car, they do not stand in front of the bank in getting paid.
Answered on May 29th, 2012 at 7:13 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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If you are farther enough behind that you are sued and a judgment is entered against you, it can be executed against personal property that has equity above the liens and exemptions. In the case of the car, that would mean its value would have to exceed the loan against it plus your state exemption of $3,500. So, it is unlikely that you would lose your car based on student loans or other debt.
Answered on May 29th, 2012 at 7:09 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Most likely not but it depends on the amount of equity in the car.
Answered on May 29th, 2012 at 7:00 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You will not likely be able to eliminate your student loan debt with a bankruptcy, so be sure to consult with an attorney. In a chapter 7 the trustee would be able to take your car or you would have to pay money if there is too much equity. You should consult an attorney on this issue.
Answered on May 29th, 2012 at 6:59 PM
No, you will not lose your car if you choose to continue to make payments. On the other hand, your student loans are non-dischargeable.? You can file bankruptcy, but your student loans survive.
Answered on May 29th, 2012 at 6:52 PM