Asked in RepossessionPersonal FinanceDebt and BankruptcyLoansBankruptcy LawMoney Management
Can you file bancruptcy on a car loan?
January 29, 2009 12:25AM
THIS QUESTION HAS BEEN ASKED AND ANSWERED MANY, MANY TIMES. IT IS PART OF THE DATABASE HERE. PROPERLY USING THE SYSTEM MEANS YOU WOULD HAVE GOTTEN THE ANSWER WITHOUT HAVING TO WAIT! (Or inconveniencing others and wasting valuable resources). (And consider that if you don't understand how to use this simple system, which actually asked if this or a similar question were what you were here asking about - before your failure to think forced this into the active forum - you really should really consider having your own personal lawyer handle EVERYTHING to do with your financial matters and especially any BK issues. All of which are much much more complex and less forgiving of not adhereing to the system than this). It's not a "can"...it's a must! ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. The court will then order each of them in priority according to the laws, some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder becomes a general or unsecured claim against the BK. You get a fresh start.... Not disclosing all items is frequently easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well).