Bankruptcy Secrets
Keeping your Car
Most bankruptcy lawyers used to use a variety of tactics to help their clients keep their cars. Most people badly need their cars so keeping a car is usually an important issue with most filers.
Unfortunately under the new bankruptcy law your chances of keeping your wheels just became much more difficult. Under the old law you could ignore the actual outstanding balance on your car loan and instead simply pay the current value of the car off in more reasonable payments. This was a major break for most people. The courts knew that people had little chance of digging themselves out of financial hot water if they couldn't get to and from work.
Now under the new bankruptcy law you'll have to pay the full price you owe - every penny if you want to hang on to your wheels. Exactly how did the law makers think people are going to get to work?
There is one possible out here. This harsh new rule only applies to cars purchased within the past two and a half years. If your car loan has been in place for longer than that, you may be able to work a deal. Ask your lawyer.
