How to Keep Your Car in Chapter 7 Bankruptcy

Because filing for bankruptcy in some instances might require individuals to liquidate certain assets to repay creditors, many people avoid filing because they know they cannot give up certain assets. This is fairly common, especially concerning someone’s vehicle. Because many people need a car to drive to and from work, they cannot give up their car when filing for Chapter 7 bankruptcy. However, many people do not realize that they do not have to give up all of their assets when filing for Chapter 7 bankruptcy, and even if someone has outstanding debts on a car, they still may be able to keep the vehicle.

Filing for bankruptcy can be a confusing process but remember, you don’t have to go through it alone. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, today at 480-829-0494 to schedule a free consultation with an experienced legal representative.

Reaffirmation on a Car Loan

Debtors may be able to keep their cars in bankruptcy by reaffirming their car loans. A debtor can reaffirm his or her car loan by agreeing to continue making car payments, even while going through the bankruptcy process.

Not only does this allow you to keep your vehicle so you can continue driving to work, but it can also help you rebuild your credit score after filing for bankruptcy. Those filing for Chapter 7 bankruptcy also have the option of vehicle redemption, where the debtor redeems his or her vehicle by paying off the loan in full.

Contact Us

At the Harmon Law Office, LLC, we will fight for you during your bankruptcy case. For the help you need, contact our Arizona bankruptcy lawyers today by calling us at 480-829-0494.