If you would like to keep your car but are so upside down on the loan that it does not make sense, Chapter 7 bankruptcy could help you to reduce the loan to a more manageable level. In Chapter 7 there is a principal called “Redemption” where you can force the lender to accept the fair market value of the vehicle in satisfaction of the entire debt.
The drawback to this is that you need to be able to pay a lump sum of money, and most people filing bankruptcy just don’t have the cash lying around. The solution to this is that a new loan is procured for the fair market value of the vehicle and used to satisfy the original loan. Because the balance is much lower, the monthly payments are more manageable. I have helped hundreds of people facing bankruptcy to procure loans such as these.
If you are on the verge of filing bankruptcy and are concerned about your car situation, don’t get discouraged, call me to set up your free consultation. Let me help you explore your options. Call experienced Arizona Bankruptcy Attorney, Benjamin Skinner at JacksonWhite today! (480) 648-8975.