If I’m behind on my truck payments and so my truck is now out for repossession, will filing bankruptcy let me keep it?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I’m behind on my truck payments and so my truck is now out for repossession, will filing bankruptcy let me keep it?

Asked on January 31, 2013 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, it will not. When goods--like a truck--provide collateral or security for a loan or financing, you cannot keep them without paying the loan, even if you file for bankruptcy. Bankrupcy does not extinguish the security interest. Filing for bankruptcy will delay repossession for a time, and it will give you the option of walking away from the truck while discharging the loan/debt (i.e. you lose the truck, but can avoid being sued for the money); however, if you do not agree to and keep paying the loan/debt, the lender will able to repossess your truck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Potentially the filing of a bankruptcy petition may allow you to keep your vehicle that presumably has a secured loan with respect to it if you continue to stay current with the loan. Given what you have written, I suggest that you consult with a bankruptcy attorney to assist you in your matter.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption