Transcript:
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Maybe the number one question we receive in every consultation from uh our our clients is what happens to my car loan in a bankruptcy? And the most important thing for everyone to know is you don’t lose your car in your bankruptcy uh unless you choose to or unless you continue to not make the payments. So uh there one of two ways can be handled. It can be handled in a chapter 7 or chapter 13 where you just continue making those payments directly to whoever your car loan is with or in chapter 13. Uh
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sometimes, especially if someone is already behind on the payments, the car loan is rolled into your chapter 13 payment that you make each month. And uh that is spread out. You don’t have to get caught up all at once. often the interest rate is lower. Uh and if you’ve had the loan more than two and a half years, the amount can be lowered down to the uh retail blue book value. So uh it uh is very beneficial for a lot of car owners to pay their car loan through their chapter 13. But unless you want to
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voluntarily give it up, you don’t have to. No problem keeping your car alone in bankruptcy.
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