Keep Your Car
One of the most common — and most harmful — bankruptcy myths that people have is that you will automatically lose all of your property that you owe money on if you file for bankruptcy. This can be a problem for a lot of people. You might have been slow to call a bankruptcy attorney because of this myth.
The fact is, there are a few options for keeping your car in bankruptcy. At Walton Legal Services, our Indiana bankruptcy lawyers have a wealth of experience helping people find the road to financial freedom. We can help you explore options for keeping your car while still receiving debt relief through bankruptcy.
Walton Legal Services: More than 30 years | More than 30,000 bankruptcies filed
How Do You Keep Your Car in Bankruptcy?
Some of the options for stopping repossession include:
- Chapter 7 bankruptcy: If your finances allow it, you can discharge enough of your debts other than your car in a Chapter 7 proceeding and can catch up with your car payments, reaffirm your car debt and keep your car.
- Chapter 13 bankruptcy: Chapter 13 bankruptcy will give you either three years or five years to repay your car loan and keep your car.
- The automatic stay: If you file for bankruptcy, either Chapter 7 or Chapter 13, you will be granted the benefit of the automatic stay, which prohibits collectors from continuing any collections activity while the bankruptcy proceedings are under way. This is a temporary solution, but it could give you enough time to get caught up on your past due bills and retain possession of your car.
- Debt negotiation: Sometimes it is possible to talk to your lender and work out a more equitable payment plan that would make it possible for you to keep up with your payments and keep your car.
If you are looking for an Indianapolis debt-relief lawyer to help you find the road to financial freedom, call one of our Indianapolis law offices, call our Columbus, Indiana, office or contact us online. We offer free initial consultations, and we give you detailed up-front information about our fee arrangements, so there will be no surprises.
