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 you file for bankruptcy on car title loans?
I have two car title loans. Unfortunately, I can’t pay for both of them and I’m looking to file for bankruptcy. But I’m not sure what will happen to the title loans. Can you file for bankruptcy on car title loans?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Filing for bankruptcy is never a pleasant experience, but you may be able to file for bankruptcy on car title loans. However, because car title loans are secured debts and use the car as collateral, the process depends on how you file for bankruptcy.
Under Chapter 7 bankruptcy, you can redeem a secured debt, your car, but you have to pay the car’s current market price in one payment. For example, if you owe $7,000, but the car is valued at $3,000, if you pay $3,000, the remaining debt will be discharged.
You can also keep the vehicle under Chapter 13 bankruptcy and pay the loan balance over a three- to five-year period as determined by the court-appointed bankruptcy trustee. Another advantage under Chapter 13 is that the contractual interest rate is overridden and replaced by a much lower statutory rate.
Now that you know your vehicle is safe from repossession, don’t forget to keep an active
car insurance
policy!And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal so you’re always getting the coverage you want at the best price.
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 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
