Can you keep your car loan if you file for Chapter 7 bankruptcy?

I need to file for Chapter 7 bankruptcy, but I don’t want to lose my car loan as a result. Can I keep my car loan even after filing for bankruptcy? Or will I have to liquidate it as part of the bankruptcy process?

Bankruptcy can be a difficult, confusing process. But try not to worry! You may be allowed to keep the car after filing for Chapter 7 bankruptcy.
That being said, you must have enough expendable money to continue paying your car loan, and you’ll need to be up-to-date on your payments. Depending on your situation, you may even be able to *negotiate a discounted equity, which allows you to keep the car and pay less on the remaining debt.
Unfortunately, bankruptcy puts you in a precarious position—so any late payments could lead to your car being repossessed.
For help keeping up with your loan payments, start saving on car insurance with Jerry. A licensed broker, the Jerry app can help you compare personalized quotes from over 50 top providers like Progressive and Nationwide for free. Users *save an average of $879 annually on car insurance with Jerry—and it only takes a minute to sign up!
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.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free