You may owe far more on your car than it is really worth. But you want to keep your car, even after you have filed for bankruptcy. You need it. Normally, lenders do let you keep your car, but demand and impose full payment on your current loan.
Typically, you have very few options with your vehicle in a bankruptcy:
You may KEEP your existing car loan, and continue making your high monthly payments until your loan is paid in full.
A REDEMPTION allows you to keep your car by paying fair market value to the creditor – not the amount you actually owe.
The hitch is that you have to pay the value of the vehicle in a lump sum.
But we can assist you in getting new financing in order to pay that lump sum.
Be careful there is a time limit for Redemptions. The deadline to Redeem is 45 days from the initial date of the 341a meeting.
As your San Diego Bankruptcy attorney, I would be pleased to discuss this option in your bankruptcy.