PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can I file bankruptcy on a car loan?
I can’t keep up with my car loan payments, and I don’t know what to do. I need the car, but the payments are just too much! Is it possible to file for bankruptcy on a car loan?
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Finances can be tricky, and keeping up with all the monthly payments can feel impossible. Unfortunately, you cannot file bankruptcy on a single loan. If you file for bankruptcy, the court will review and assess all your finances.
So your car loan may be discharged during bankruptcy—but you probably won’t be able to keep your car. Most car loans hold the car as collateral, so discharging the loan would be like defaulting on it. In either case, the lender would repossess your car.
But you may be able to keep your car in chapter 7 bankruptcy if you’re up to date on payments and have less than the maximum allowed equity in the car. But if you’re already having trouble keeping up with payments, it’s unlikely you’ll be allowed to keep it.
If you’re struggling to keep up with your monthly bills, start saving on car insurance with
Jerry
. A licensed broker, the Jerry app helps users save an average of $879 a year on car insurance—and it only takes a minute to sign up!MORE: How to refinance a car
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
