Can I file for Chapter 7 bankruptcy if I have a car loan?

Am I allowed to file for Chapter 7 bankruptcy if I still have a car loan? I need to file for Chapter 7 bankruptcy, but I'm unsure if I can when I still owe money to a lender.

Answer
Finances can be challenging to navigate, especially when there are lenders involved. But you can file for bankruptcy when you have a car loan. Unfortunately, you might lose the car if you do.
You can only keep your car in chapter 7 bankruptcy if your payments are up to date and you have enough income or savings to continue making payments. In some cases, your attorney will even negotiate lower monthly terms so you can keep the car. While your attorney finds out if you can keep the car, keep making payments. If you don’t, your car may be at risk of repossession.
To cut back on your car expenses while in bankruptcy, save on car insurance with Jerry. A licensed broker, the Jerry app can help you find and compare quotes from over 50 providers for free. Users *save an average of nearly $900 a year** on car insurance—so sign up and start saving today!
Eric Schad
Answered on Nov 08, 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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