QUESTION
Will the bank take back car if you have a car loan and you filed bankruptcy?
Asked on Feb 24th, 2012 on Bankruptcy - Michigan
More details to this question:
Will the bank take back car if you have a car loan and you filed bankruptcy?
15 ANSWERS
2 Awards
Yes, if you do not make the payments they can take back the car.
Answered on Mar 02nd, 2012 at 10:07 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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If you continue to make the payments and reaffirm the debt, the bank will not take your car.
Answered on Mar 02nd, 2012 at 9:12 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you have a car loan you will have to reaffirm the debt in writing and have it approved by the bankruptcy court. Some lenders do not require a reaffirmation agreement if you are current and remain current in your loan payments. Check with your lender after filing bankruptcy.
Answered on Feb 29th, 2012 at 11:35 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes if you fail to reaffirm the debt and pay for your car you will lose it.
Answered on Feb 29th, 2012 at 11:02 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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They will if you get behind on payments. They can also repo if you do not at least attempt to reaffirm. In practice, they usually will not as long as you keep up with the payments.
Answered on Feb 29th, 2012 at 2:57 AM
Family Law Attorney serving Hackensack, NJ
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The Law Offices of Stuart Jon Bierman
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It depends, as a general rule if you keep making the payments and complying with the finance contract or lease contract then you usually get to keep the car. Usually, if you don't make the payments then the finance company will be able to repo the car.
Answered on Feb 28th, 2012 at 12:21 PM
Banking Attorney serving Miami, FL
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The Barrister Firm, P.A.
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Yes, a secured creditor (like a car lender) may seek relief from the stay imposed by the bankruptcy. You should seek a full legal consultation.
Answered on Feb 28th, 2012 at 10:56 AM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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Only if you don't pay for it.
Answered on Feb 27th, 2012 at 7:35 PM
Immigration Law Attorney serving Hialeah, FL
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Hernandez & Suarez, PL
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You have two options if you are paying for a car and you are filing bankruptcy. One, you can keep paying for the car and assume the debt. Many times, you are able to negotiate a better interest rate. Two, you may just let the lender keep the car and the debt will be discharged in bankruptcy. To make sure, I am specifically addressing the filing of a chapter 7 bankruptcy.
Answered on Feb 27th, 2012 at 3:57 PM
Bankruptcy: Creditor Attorney serving Grand Island, NE
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Milner Neuhaus & Judds
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While this seems like a simple question, it has many components that make it quite complex. The variables include whether the bank has a purchase money lien, a non-purchase money lien or no lien at all and whether there is any equity in the vehicle. Also can the vehicle be exempted as a tool of the trade or under some other exemption? Because of these variables you should contact an attorney so that complete details can be shared and a solution offered.
Answered on Feb 27th, 2012 at 3:52 PM
judith runyon
Not if you are current and you want to keep the car.
Answered on Feb 27th, 2012 at 3:47 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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No if you pay the car payments. You have the option to give it up if you cannot pay it but no problem if you pay.
Answered on Feb 27th, 2012 at 3:46 PM
Criminal Law Attorney serving Ellicott City, MD
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Law Office of William C. Wood, LLC
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Not necessarily. If you are current on the payments, you can keep the car if you agree to enter into a reaffirmation agreement or can redeem the car. If you wish to surrender the car, you may do so and avoid any further financial responsibility for the vehicle by returning the car to the lender and not agreeing to reaffirm the loan.
Answered on Feb 27th, 2012 at 3:40 PM
General Practice Attorney serving Deer Park, TX
Partner at
Slate & Associates Attorneys at Law
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If you fail. to keep paying for the car, they will eventually be permitted to repossess the car, even if you are in a bankruptcy proceeding.
Answered on Feb 27th, 2012 at 3:39 PM
Only if you are not current on your payments or refuse to reaffirm the debt upon request. If you have a large unsecured debt owing to the same bank which you are not paying back, they may refuse to reaffirm, but this is rare.
Answered on Feb 27th, 2012 at 3:37 PM