Despite bankruptcy, you can still drive. Even if you declare bankruptcy, your wheels will still turn. Whether you owe money on the car, whether its worth exceeds the debt, and whether you have any vehicle-related exemptions will determine what you must do in order to keep the car.
Will the trustee drive the vehicle?
The bankruptcy trustee won’t seize the car if there is no equity in it after deducting any car loans and exemptions from the car’s present sale value.
A debtor can often purchase any unprotected equity from the Chapter 7 trustee if it exists in the car and is greater than the value of the applicable exemptions.
Will the car be taken by the creditor?
If you still owe money on it, you have the option of reaffirming the debt to the secured lender, keeping the vehicle, and making payments as usual. If you continue to make the required payments under the terms of the contract, you can keep the car with some lenders without ever reaffirming the obligation.
You also have another option: you can pay the secured creditor the present value of the car in one go (redemption). If the present value can’t be agreed upon, the bankruptcy judge will hold a hearing and decide the car’s value.
If you are around Los Angeles or Texas, you can consult a renowned firm named Recovery Law Group who can help you with all your issues related to Bankrupcy, You can get in touch with them using this phone number – (888-297-6203) or the link https://recoverylawgroup.com/bankruptcy/
Some lenders specialise in lending money to clients filing for bankruptcy so they may buy back their autos. Although the interest rates are high, they could be justified if there is a significant discrepancy between the loan sum and the car’s current value.
Giving up is a possibility: You are not required to make any payments if you opt to return the car. After all, filing for bankruptcy offers the possibility for a new beginning, which can mean being rid of many issues.