Can I file bankruptcy on my car loan?

I have a few credit cards, a small personal loan, and a car loan. Everything is in good standing except for my car loan. I’m not sure if I can get the payments back on track, but I don’t want the car to get repossessed. Can I file for bankruptcy on just the car loan?

Answer
Sorry to hear about your car loan, but you’ve done a great job to keep your high-interest debt in order! Unfortunately, you can’t file for bankruptcy on just a car loan, as bankruptcy requires an assessment of all your debts.
Additionally, bankruptcy will devastate your credit score—and likely impact your finances for at least seven years. Because of the catastrophic nature of bankruptcy, you should try other avenues to repair the situation, including:
  • Selling the car
  • Refinancing the vehicle
  • Negotiating different terms with your lender
  • Voluntarily surrendering the car
If you want to keep the car, refinancing or negotiating are your best options, but act quickly before your lender repossesses your car!
For help finding a good lender to refinance, try Jerry. A licensed broker, Jerry can help you compare terms and rates from top lenders in your area. That way, you can make sure you’re getting reasonable terms before you settle for a lender.
Eric Schad
Answered on Nov 19, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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