What should I do with my car loan during bankruptcy?

I'm in the midst of Chapter 7 bankruptcy. I have a car loan and I'd like to keep my car, but I'm not sure how to do it. Any tips?

Answer
If you have a car loan or a car and you’re entering into Chapter 7 bankruptcy, you may be able to keep the car.
If you still have multiple payments to make, you can keep the car you get up to date on your loan payments. You may be able to work out a payment plan with your lender if you’re behind on payments or can’t make a full payment each month.
Lenders would rather work out a payment plan than lose money in repossessing and auctioning off the car, so don’t be afraid to reach out.
To avoid any added expenses when you’re in bankruptcy, make sure you aren’t overpaying for your car insurance. Jerry’s free comparison shopping service can help you find a more affordable rate for the coverage you need.
Eric Schad
Answered on Oct 26, 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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