Can I Keep My Car in Bankruptcy? | Summary and Q&A

6.2K views
January 24, 2018
by
Consumer Warrior
YouTube video player
Can I Keep My Car in Bankruptcy?

TL;DR

Learn how filing for chapter seven bankruptcy affects your car, and find out if you can keep it by making monthly payments and signing a reaffirmation agreement.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 🕖 Chapter seven bankruptcy divides debts into secured and unsecured categories.
  • 💳 Unsecured debts, like credit card debt and medical bills, can be eliminated in chapter seven bankruptcy.
  • 😨 Secured debts, such as car loans, require ongoing payments to keep the asset.
  • 😨 A reaffirmation agreement is necessary to keep a car in chapter seven bankruptcy.
  • 🤘 Signing a reaffirmation agreement can have risks if you later encounter financial difficulties.
  • 😨 Continuing to make monthly payments is essential to keep a car during bankruptcy.
  • 🥶 Filing for bankruptcy does not result in getting a car for free; payments must still be made.

Transcript

(upbeat, pop music) - Hey everybody. Welcome back to the Consumer Warrior Podcast. The podcast is dedicated to helping you with your big debt problems. If you're just dabbling in debt, this isn't the podcast for you. We deal with the big debt problems. Like repossession, debt collection, lawsuits, foreclosure, bankruptcy, and all the other horrible... Read More

Questions & Answers

Q: Can I keep my car if I file for chapter seven bankruptcy?

Yes, you can keep your car, but you must continue making monthly payments on it throughout the bankruptcy process and afterward.

Q: What happens if I stop making car payments after filing for bankruptcy?

If you stop making payments, the lender can ask the bankruptcy court for permission to repossess the car, just as they would if you hadn't filed for bankruptcy.

Q: What is a reaffirmation agreement?

A reaffirmation agreement is a document prepared by the lender that reaffirms the terms of your original car loan. By signing it, you commit to continuing to make payments on the car.

Q: What are the risks of signing a reaffirmation agreement?

If you sign a reaffirmation agreement and then experience financial hardship later on and can't make car payments, you can still be held liable for any remaining balance on the loan.

Summary & Key Takeaways

  • Filing for chapter seven bankruptcy divides debts into secured and unsecured categories, with secured debts being those tied to collateral like a car or a house.

  • Unsecured debts, such as credit card debt and medical bills, can be eliminated through the bankruptcy process, while secured debts require ongoing payments to keep the asset.

  • To keep your car in a chapter seven bankruptcy, you need to continue making monthly payments and sign a reaffirmation agreement, which commits you to the terms of the original loan.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Consumer Warrior 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: