We donít usually find that car loans are the most serious financial problems that push people toward bankruptcy, but the need to make a large payment every month can certainly contribute to your current financial pressures.
At Wantland Law, PLLC, Scott Wantland can help people find sensible solutions to car loan problems that can interfere with your ability to meet your other monthly obligations.
Call 502-957-0000 for Advice About Auto or Truck Loan Problems
Unless you paid the full price of your car when you bought it, thereís usually a secured creditor holding a collateral interest in your vehicle with a right of repossession if your payments go into default. While a bankruptcy case will generally relieve the risk of immediate repossession, youíll still need to deal with the fact that your lender has a right to the vehicle that secures its claim. You may also be under an obligation to maintain insurance.
Our first step is to help you figure out whether your car is worth keeping. Itís probably not worth as much as you owe on it. One option is to turn it over to the lender, because the additional amount you owe after surrender is dischargeable in bankruptcy.
Another option is whatís known as bankruptcy redemption. You can own your car free and clear of your lenderís claims by paying the actual value of the vehicle after youíve filed for bankruptcy. If you owe $10,000 on a car or truck worth $6,000, a payment of $6,000 will take care of the obligation - the remainder will be discharged.
To learn more about your ability to resolve a car loan problem through surrender or redemption, contact Scott Wantland in Shepherdsville, KY for a free consultation.