Question of the Day: Behind on Car Payments? What Happens in Your Arizona Chapter 7 Bankruptcy?

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Repossession and BankruptcyQuestion:

I am two months behind on my car payments. What will happen to my car during my chapter 7 bankruptcy?

Answer:

If you are behind on your car payments you are likely facing repossession of your car.  Once you file your chapter 7 bankruptcy the court will issue an order that will stop the repossession of your vehicle.

However, in a chapter 7 case you will be required to get caught up on your car payments or the bank will likely be given permission to repossess the vehicle.  If you can get caught up on your payments you can reaffirm the loan, keep the car, and continue to make the monthly payment.

Rule of Thumb: If you want to keep the car, you have to make the payments.

 

Topics:  Chapter 7, Delinquent Car Payments, Repossess

Published In: Bankruptcy Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© John Skiba, Skiba Law Group, PLC | Attorney Advertising

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