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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2874
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I purchased a car. I fell behind on the payments and the loan

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I purchased a car. I fell behind on the payments and the loan was accelerated. The statute of limitations has passed for the lender to take me to court for the unpaid balance. There is still a lien on the car. They have stopped contacting me about the car. What would happen if I filed for bankrupcy?

Terry L :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L :

The debt would be discharged in the case. The lender would still have the right to the vehicle, but you would not owe anything left on the loan.

Terry L :

You would also have the option to redeem the car: Buying it for the fair market value, with any extra owed being discharged in the case.

Terry L :

You can also reaffirm, and make the regular payments on the car, but that would entail you to catch up, which doesn't sound likely.

Terry L :

Probably best to surrender it, eliminate the debt, and go get something else.

Terry L :

Let me know if you have any other questions.

Terry L :

thanks

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