Summary: Chapter 7 Bankruptcy

If you have recently filed for Chapter 7 bankruptcy, you may be wondering what’s going to happen to your car. It’s the most common concern after real estate ownership. If you’d like to keep your vehicle, you simply have to know the details regarding your car’s worth and how that applies to the rules of filing for a Chapter 7 bankruptcy.

If you have equity in your vehicle, you are in the minority of bankruptcy filers. Most bankruptcy filers have an “underwater” vehicle loan; they owe more on the vehicle than it’s worth.

For bankruptcy filers who owe a balance that is substantially less than what the vehicle is worth, it’s wise to be cautious in negotiations. The lender is more likely to WANT to repossess the car and resell to pay off the