One of the most common questions I get is “can I keep my car?” The answer is yes if you can afford to pay for it and you really want to keep it. I get it, you have to go to work so you need a car. If you owe money on a car to a credit union and you also have a charge account with them, chances are you will be paying much more than the car is worth to keep it. Because car’s are depreciating assets chances are they will ask you to sign a reaffirmation agreement (its you agreeing to pay as if Bankruptcy never happened) so if you default after the Bankruptcy they can still sue you.
So assuming you can afford to pay for the car, you can reaffirm and keep it.
If you can’t afford it, or its in bad shape, or you just don’t want it anymore you have a couple of options,
- See if you can borrow a car and save what you would be paying to get a different vehicle, maybe something to last a couple of years so you can get a better car at a lower interest rate.
- Use a Bankruptcy Car Replacement Service to either buy a new car or loan you the money to keep your current car. (Generally requires it to have less than 100,000 miles)
- Find a local dealership that will work with you. We have people we use that do a great job getting you a reliable car at a reasonable rate
