Bankruptcy Attorneys in Tacoma
Tacoma Bankruptcy Attorney

Tacoma Bankruptcy Attorney


Erin M. Lane
Talk to a Tacoma bankruptcy lawyer today:
(253) 778-6952
Affordable, Aggressive & Experienced.
Low flat fees & flexible payment plans.
Tacoma, WA Bankruptcy Lawyers
Your Car in Bankruptcy

Washington State bankruptcy and your vehicle.

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Bankruptcy Attorneys in Tacoma, WA.

Filing bankruptcy in Washington State can stop car repossession.

There are many ways to stop car repossession and keep your vehicle safe in bankruptcy. In a Chapter 7, you can usually keep a car unless you have more than one for each family member who needs one and they are not too expensive. Even then, many people are able to keep more than one car. You can either keep making payments on a car of, if it is paid in full, you can usually protect the car with your exemptions.

Can I keep my car if I file a Chapter 13 bankruptcy instead of a Chapter 7?

In a Chapter 13 it is easier to keep a car. You can pay a car loan through a Chapter 13 or if you have a car that exceeds your exemptions in Chapter 7, you can pay the same amount that would be generated from the sale of the car in monthly payments into the plan.

If your car is too expensive for you or you have found it does not serve your needs, you can surrender it in bankruptcy. That means you can give the car back to the creditor and walk away from the loan. After a car is repossessed and sold, any balance left on the loan is called a deficiency. Car deficiencies are dischargeable in bankruptcy.

If you are making payments on a car, you can keep the car after filing Chapter 7 by staying current on the loan. The creditor may require that you sign a reaffirmation agreement. This agreement creates an exception to the discharge – the debt will not be wiped out. Some car companies will allow you to keep paying without signing the reaffirmation but some will repossess the car if you do not sign it, even if you are current. Be careful signing this agreement because it would be a real hardship if you filed bankruptcy, had a reaffirmed car repossessed and were stuck with a deficiency.

Another option in Chapter 7 is a redemption. You can pay off a car loan at the car’s value. Some lenders specialize in making redemption loans for debtors in bankruptcy. Of course, this only makes sense if you owe a lot more on the car than it is worth.

One thing to be aware of is that some creditors will “cross collateralize” credit cards on a car loan. That means they offer you a credit card when you already have a car loan with them. Some people are not aware that they are giving the creditor a lien on their car when they take out the credit card. If you took out a credit card with the same bank or credit union that has your car loan, you may want to check into that.

In a Chapter 13, you can pay off the car loan over five years. By spreading out payments, you can lower the monthly payment. You can also “cram down” car loans that were taken out over two and a half years ago, were refinanced or had “negative equity” rolled into them from a trade in. A cram down means you pay part of the loan in full, usually a dollar amount based on the car’s value, and the rest of the loan is paid as if it were a credit card debt, sometimes at a rate as low as 0%. You can always lower high interest loans in a Chapter 13.

Talk to a Tacoma bankruptcy attorney today for free!

At our law firm we offer your first consultation for free so that you may get a feel for who we are and how we can help. An experienced Tacoma bankruptcy attorney will answer questions regarding Washington State bankruptcy and your vehicle. We will help you discover if filing is indeed the best option for you to stop car repossession and bring your life to a greater financial balance. With our low affordable fees and flexible payment plan options, we make obtaining a brighter financial future as easy as possible!

Tacoma Bankruptcy Lawyers

Washingtion State Bankruptcy And Your Vehicle Need to protect your vehicle from repossession and would like experienced legal help? Call a Tacoma bankruptcy attorney with our law firm today!

Tacoma:
(253) 778-6952