vehicle loans Archives

Usually your car or truck is protected in bankruptcy with a vehicle exemption. Or if the vehicle is worth too much Chapter 13 can protect it.

The 910-day condition for doing a vehicle debt cramdown doesn't apply if the vehicle was not "acquired for the personal use of the debtor."

Filing a Chapter 7 case stops repossession of your vehicle temporarily. If you are getting another vehicle, that can be valuable time.

Chapter 7 stops a repossession of your vehicle for lapsed insurance, but almost always the amount of time it buys you is very short.

Chapter 7 buys you the crucial time you need in many situations when falling behind in your obligations related to your vehicle or your home.

Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 "straight bankruptcy" can't.

If you're buying a vehicle, sometimes getting out of the contract is your best option. Chapter 7 lets you do that, owing nothing.

If you want secured creditors to be paid in your Chapter 13 plan, they must file proofs of claim. Let's use the example of a vehicle loan.

The second scenario, the Chapter 13 solution for keeping a vehicle if you're behind on payments.

You can save your vehicle with Chapter 7 if you can quickly catch up. But if you can't, consider Chapter 13.

Bankruptcy will stop a repossession very fast. Then a month or so later you surrender the vehicle, but gain some key advantages.

A vehicle lease can cost you less up front and monthly, but in fact is often the most expensive option. Bankruptcy is your escape clause.