{"id":37857,"date":"2024-04-19T02:57:45","date_gmt":"2024-04-19T09:57:45","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=37857"},"modified":"2024-04-19T02:57:45","modified_gmt":"2024-04-19T09:57:45","slug":"car-loan-bankruptcy-alternative","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/","title":{"rendered":"Chapter 7 or 13: How Bankruptcy Can Help With Your Car Loan"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Dont_Lose_Your_Ride_Exploring_Chapter_7_and_13_Bankruptcy_for_Car_Loans\"><\/span><b>Don&#8217;t Lose Your Ride: Exploring Chapter 7 and 13 Bankruptcy for Car Loans<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-663c795e3d6af\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-663c795e3d6af\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Dont_Lose_Your_Ride_Exploring_Chapter_7_and_13_Bankruptcy_for_Car_Loans\" title=\"Don&#8217;t Lose Your Ride: Exploring Chapter 7 and 13 Bankruptcy for Car Loans\">Don&#8217;t Lose Your Ride: Exploring Chapter 7 and 13 Bankruptcy for Car Loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Quick_Summary\" title=\"Quick Summary:\">Quick Summary:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Understanding_Chapter_7_vs_Chapter_13_Bankruptcy\" title=\"Understanding Chapter 7 vs. Chapter 13 Bankruptcy\">Understanding Chapter 7 vs. Chapter 13 Bankruptcy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Chapter_7_Bankruptcy\" title=\"Chapter 7 Bankruptcy\">Chapter 7 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Chapter_13_Bankruptcy\" title=\"Chapter 13 Bankruptcy\">Chapter 13 Bankruptcy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#The_Impact_of_Chapter_7_vs_Chapter_13_Bankruptcy_on_Car_Loans\" title=\"The Impact of Chapter 7 vs. Chapter 13 Bankruptcy on Car Loans\">The Impact of Chapter 7 vs. Chapter 13 Bankruptcy on Car Loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#What_Happens_to_Your_Car_in_Chapter_7\" title=\"What Happens to Your Car in Chapter 7?\">What Happens to Your Car in Chapter 7?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#What_Does_Chapter_13_Mean_For_Your_Car_Loan\" title=\"What Does Chapter 13 Mean For Your Car Loan?\">What Does Chapter 13 Mean For Your Car Loan?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/pdxlegal.com\/car-loan-bankruptcy-alternative\/#Get_Legal_Help_in_Understanding_Bankruptcy_and_Car_Loans\" title=\"Get Legal Help in Understanding Bankruptcy and Car Loans\">Get Legal Help in Understanding Bankruptcy and Car Loans<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Have you ever found yourself struggling to make payments on your car loan? You&#8217;re not alone. Many people across the United States face challenges when keeping up with car payments. It can feel overwhelming and stressful, wondering how you&#8217;ll manage to keep your car while juggling other bills. But here&#8217;s some good news: there&#8217;s a car loan bankruptcy alternative that could help you out.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bankruptcy is a legal way to get some relief from debts you can&#8217;t afford to pay. While it might sound scary, bankruptcy can help with car loan troubles. In the U.S., there are two main types of bankruptcy that people often use to get back on track with their finances: <\/span><b>Chapter 7 and Chapter 13<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quick_Summary\"><\/span><b>Quick Summary:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bankruptcy offers financial relief from unmanageable debts, providing a solution to car loan troubles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 7 and Chapter 13 are the two main types of bankruptcy in the U.S., each offering unique ways to address debt and car loans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 7 bankruptcy or &#8220;liquidation bankruptcy&#8221; wipes away many debts, allowing for a fresh financial start. It offers options to keep, buy, or surrender your car.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 13 bankruptcy involves a repayment plan to pay back debts over time, allowing for a catch-up on missed payments and a potential reduction of loan amounts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 7 bankruptcy can affect your car loan by giving you options to reaffirm, redeem, or surrender the vehicle. It provides a chance to renegotiate car loan terms or even eliminate the debt, depending on your situation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chapter 13 bankruptcy allows you to include your car loan in a repayment plan and avoid repossession. It may also offer the possibility of reducing the loan amount to the car&#8217;s current value, making payments more manageable.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Chapter_7_vs_Chapter_13_Bankruptcy\"><\/span><b>Understanding Chapter 7 vs. Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When dealing with debt, you might hear about two main types of bankruptcy: Chapter 7 and Chapter 13. Both can help you get back on your feet financially, but they work differently. Let&#8217;s break down what each one means and how they can help you.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_7_Bankruptcy\"><\/span><b>Chapter 7 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Think of <\/span><a href=\"https:\/\/pdxlegal.com\/chapter-7\/\"><span style=\"font-weight: 400;\">Chapter 7<\/span><\/a><span style=\"font-weight: 400;\"> as a fresh start. This type of bankruptcy is often called &#8220;<\/span><b>liquidation<\/b><span style=\"font-weight: 400;\">,&#8221; which means some of your assets might be sold to pay off what you owe. But don&#8217;t worry, you won&#8217;t lose everything. There are rules about what you can keep, like your home, car, and basic things you need to live.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you file for Chapter 7, a trustee\u2014a person overseeing your case\u2014will look at what you own and what you owe. The best part about Chapter 7 is that <\/span><b>many of your debts can be wiped away completely<\/b><span style=\"font-weight: 400;\">. That means you won&#8217;t have to pay them back. It&#8217;s like hitting the reset button on your finances.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_13_Bankruptcy\"><\/span><b>Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/pdxlegal.com\/chapter-13\/\"><span style=\"font-weight: 400;\">Chapter 13<\/span><\/a><span style=\"font-weight: 400;\"> is a bit different. Instead of selling your stuff, this type of bankruptcy lets you make a plan to pay back some or all of your debts over time. You&#8217;ll make monthly payments based on what you can afford, usually for<\/span><b> three to five years<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The court helps you make this plan and considers things like your income, expenses, and types of debts. The goal is to <\/span><b>make monthly payments <\/b><span style=\"font-weight: 400;\">manageable for you while still paying back your creditors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One big advantage of Chapter 13 is that it can help you keep necessary things like your home or car, even if you&#8217;ve fallen behind on payments. It&#8217;s a way to catch up and get back on track.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Impact_of_Chapter_7_vs_Chapter_13_Bankruptcy_on_Car_Loans\"><\/span><b>The Impact of Chapter 7 vs. Chapter 13 Bankruptcy on Car Loans<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re facing tough financial issues, you might be thinking about bankruptcy. When it comes to car loans, Chapter 7 and Chapter 13 bankruptcy can have different impacts. Here\u2019s what each one means for your car loan:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Happens_to_Your_Car_in_Chapter_7\"><\/span><b>What Happens to Your Car in Chapter 7?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Chapter 7 bankruptcy can affect your car loan in different ways. Whether you want to keep your car, buy it for less, or let it go, there are options to consider. Understanding your choices and how they&#8217;ll impact your car loan before filing for Chapter 7 is crucial.<\/span><\/p>\n<h4><b>Reaffirming Your Car Loan<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">One option with Chapter 7 is to reaffirm your car loan. That means you <\/span><b>agree to keep making payments on your car<\/b><span style=\"font-weight: 400;\">, and in return, you get to keep it.\u00a0<\/span><\/p>\n<h4><b>Redemption: Buying Your Car for Less<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Another option in Chapter 7 is called <\/span><b>redemption<\/b><span style=\"font-weight: 400;\">. You can <\/span><b>buy your car by paying its current value<\/b><span style=\"font-weight: 400;\">, which might be less than what you owe. If your car is worth less than your loan amount, redemption can be a good deal to save money.<\/span><\/p>\n<h4><b>Surrendering Your Car<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">If you can&#8217;t afford to keep your car or don&#8217;t want it anymore, Chapter 7 lets you surrender it. That means <\/span><b>giving the car back to the lender<\/b><span style=\"font-weight: 400;\">. Once you surrender the car, you won&#8217;t owe any more money on the loan, even if the car is sold for less than what you owe.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Does_Chapter_13_Mean_For_Your_Car_Loan\"><\/span><b>What Does Chapter 13 Mean For Your Car Loan?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you&#8217;re considering bankruptcy, Chapter 13 is another option you might come across. Unlike Chapter 7, which is quicker, Chapter 13 involves a repayment plan where you pay back some or all of your debts over time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Chapter 13 bankruptcy offers several ways to manage your car loan and keep your car. Here\u2019s how it can affect you:<\/span><\/p>\n<h4><b>Including the Car Loan in Your Repayment Plan<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">One of the benefits of Chapter 13 is that you can<\/span><b> include your car loan in your repayment plan<\/b><span style=\"font-weight: 400;\">. That means you&#8217;ll make one monthly payment to the bankruptcy trustee, who will then distribute the money to your creditors, including your car lender. It&#8217;s a way to catch up on missed car payments and keep your car.<\/span><\/p>\n<h4><b>Cramdown: Lowering Your Loan Amount<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In some cases, Chapter 13 allows for a &#8220;<\/span><b>cramdown<\/b><span style=\"font-weight: 400;\">&#8221; on car loans. A cramdown lets you<\/span><b> reduce the amount you owe on your car to its current value<\/b><span style=\"font-weight: 400;\">. That can make your car more affordable and reduce your monthly payments.<\/span><\/p>\n<h4><b>Stopping Repossession<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">If you&#8217;re behind on car payments and worried about <\/span><a href=\"https:\/\/pdxlegal.com\/chapter-7\/will-keep-car\/\"><span style=\"font-weight: 400;\">repossession<\/span><\/a><span style=\"font-weight: 400;\">, filing for Chapter 13 can halt it. An &#8220;<\/span><b>automatic stay<\/b><span style=\"font-weight: 400;\">&#8221; goes into effect as soon as you file. The automatic stay legally prevents creditors, including your car lender, from taking collection actions like repossession. That gives you time to catch up on payments through your Chapter 13 repayment plan.<\/span><\/p>\n<h4><b>Completing Your Repayment Plan<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In Chapter 13, your <\/span><b>repayment plan<\/b><span style=\"font-weight: 400;\"> will last three or five years, depending on your income and other factors. Once you complete the plan and make all the required payments, any remaining balances on your car loan or other debts included in the plan might be wiped out. That means you could end up paying less than what you originally owed on your car.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both Chapter 7 and Chapter 13 bankruptcy offer ways to manage car loans, but they work differently. Chapter 7 might be better if you want to get rid of your car or if it&#8217;s worth less than what you owe. On the other hand, Chapter 13 can be a good choice if you want to keep your car and can afford to make payments.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Get_Legal_Help_in_Understanding_Bankruptcy_and_Car_Loans\"><\/span><b>Get Legal Help in Understanding Bankruptcy and Car Loans<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dealing with <\/span><b>car loans and bankruptcy<\/b><span style=\"font-weight: 400;\"> can be overwhelming, but you don&#8217;t have to go through it alone. Our Portland bankruptcy lawyers at Michael D. O&#8217;Brien &amp; Associates, P.C. can help you understand how Chapter 7 and Chapter 13 can help with your car loan and guide you through the process step by step.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our <\/span><a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\"><span style=\"font-weight: 400;\">bankruptcy law firm<\/span><\/a><span style=\"font-weight: 400;\"> can make a significant difference in the outcome of your case and your ability to keep your car. We will help you know your car loan bankruptcy alternatives and help you make the best choices for your financial future.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ll recommend the best strategy to help you get back on solid ground. We are here to guide you every step of the way, offering clear solutions tailored to your needs. Take the first step towards financial freedom. Contact us now to schedule a free consultation, and let us help you find the best path forward.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t Lose Your Ride: Exploring Chapter 7 and 13 Bankruptcy for Car Loans Have you ever found yourself struggling to make payments on your car loan? You&#8217;re not alone. Many people across the United States face challenges when keeping up with car payments. It can feel overwhelming and stressful, wondering how you&#8217;ll manage to keep [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":37858,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37857"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=37857"}],"version-history":[{"count":1,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37857\/revisions"}],"predecessor-version":[{"id":37859,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37857\/revisions\/37859"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/37858"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=37857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=37857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=37857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}