If you have a car loan and need to keep your vehicle while filing for Bankruptcy, your options are to reaffirm the debt, continue making payments, or, paying the creditor the true value of the vehicle. Clients often feel they have no choice but to overpay for a car because their poor credit prevents them form purchasing a replacement vehicle after filing for Bankruptcy. That is not always true. For instance, if you owe $8,000 on a car that is worth only $4,000 Section 722 of the Bankruptcy Code allows you to pay only the $4,000 in full payment for the vehicle. There are lenders that specialize in this type of funding. So if you find yourself in this situation, there may be additional options available to allow you to retain your car at a price you can afford.
