How Long Can I Keep My Car After Filing Chapter 7

File for Bankruptcy How Long Can I Keep My Car After Filing Chapter 7

How Long Can I Keep My Car After Filing Chapter 7

Choosing to file for bankruptcy is a tough choice. You read the bankruptcy provisions and worry about what would happen to your possessions. Then there's the matter of your car, which you need to work.

DoNotPay can assist with bankruptcy filing and addressing difficult inquiries. DoNotPay’s technology makes filing a breeze. Learn how DoNotPay may help you make this tough financial choice.

What is Chapter 7 Bankruptcy?

There are three main types of bankruptcy with two being the choices of most who don't own a business. Both Chapter 7 and Chapter 13 will take care of your financial obligations, but how they do so vary. Chapter 13 is a payment plan. Chapter 7 is a bit more complicated.

In bankruptcy you can expect:

  • Liens like your mortgage and security on one vehicle to survive the bankruptcy
  • Assets that exceed the exempt amount for keeping are liquidated or sold
  • Unsecured debt will be discharged
  • Secured debt will be paid by the liquidation
  • Creditors will stop calling
  • The bankruptcy will remain on your credit for 10 after the date of filing

The courts and trustees may guide you through everything before you sign the documents so you know precisely what will be kept and sold. DoNotPay will guide you through every stage of the filing procedure, so you know what to expect.

Will I Lose My Car When Filing for Chapter 7 Bankruptcy?

Vehicles are a frequently asked topic in Chapter 7. A bankruptcy has restrictions to keep you from being homeless and without transportation. If you file, your credit will be harmed for ten years. A new car may not be available for some time.

What Chapter 7 Does for Your Vehicle Includes:

  • Determine the fair market value of your vehicles
  • Pay redemption of the vehicle- the amount left up to the fair value of the vehicle so that you own the vehicle, only if the payments are current. The rest of the loan becomes unsecured debt.
  • Reaffirmation agreement approved by the court to continue paying for the vehicle as originally agreed. Only if the payments are current.

The trick is to maintain in touch with your lender before declaring bankruptcy. You can retain your car and get exemptions if the value is low enough (depending on the state).

What Bankruptcy Cannot Do?

Most people consider bankruptcy as a last resort, a way out of their own mess. But it doesn't simply wipe the slate clean. Secured obligations must be repaid, even if it means garnishing your salary. You won't get out of paying taxes, school debts, alimony, or child support.

How Long Does It Take To File for Bankruptcy?

Bankruptcy filing takes time. The filing process will take around five months. During that period, your creditors will be informed and given time to file claims, and your assets will be liquidated. After that, you will have a hearing to affirm your bankruptcy.

How to File Chapter 7 on Your Own?

Most individuals consult a bankruptcy lawyer to evaluate their eligibility, kind, and timing. Then you pay the retainer, supply papers, and the lawyer puts it all together. If you want to continue the hearings and processes, you must continue to pay the trustee. The procedure involves time and discussion with your lawyer.

Keep Your Car and File Chapter 7 With the Help Of DoNotPay

Don't spend time and money seeking the proper counsel or attending meetings to file Chapter 7. DoNotPay can assist you with assessing the worth of your car and applying for bankruptcy.

How to File for Bankruptcy Using DoNotPay:

If you want to delete old accounts but don't know where to start, DoNotPay has you covered in 5 easy steps:

  1. Search for File for Bankruptcy on DoNotPay. 
  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report. 
  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you. 
  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms. 
  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court. 

Once done, the court will give you:

  • Your bankruptcy case number
  • The name of your bankruptcy trustee
  • The date, time, and location of your meeting with your trustee

At this point, your case has been filed. The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course.

Why Use DoNotPay to File Bankruptcy

DoNotPay offers many reasons to assist you with filing for bankruptcy. DoNotPay can help:

  1. DoNotPay files across all companies and districts
  2. Fast filing and paperwork
  3. Safe filing with all the necessary paperwork included
  4. Easy to follow walkthrough for the best results

What Else Can DoNotPay Do?

Finally, finished filing for your Chapter 7 and managed to keep your vehicle? DoNotPay can help you save even more time and money by creating paperwork for:

Trust that DoNotPay has your back during this troubling time.

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