What to do if my husband and I are filing for bankruptcy and currently have a car loan?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if my husband and I are filing for bankruptcy and currently have a car loan?

We owe $19,000 left on the car but its only worth about $13,000. I don’t know if it’s worth trying to keep the car or get rid of it and try for a loan after the bankruptcy. We pay $619 a month with a 19% interest rate. I was also considering a redemption loan but I’m not sure how hard it would be to get one of those loans and what kind of monthly payments I would be facing.

Asked on August 5, 2013 under Bankruptcy Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Your interest rate on the car is very high and the car is underwater on value, both of which would tend to argue for not trying to keep it and letting the bankruptcy discharge the debt. It may be very hard to get a loan or financing post-bankruptcy for a car, so you may need to resign yourself to getting a much less expensive  vehicle--such as an 8 - 10 year old used car--in order to reduce what you'd need to a level you could qualify for.


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