Would I benefit from filing bankruptcy?

My car has been repossessed and I really want it back. My credit is poor and I dont have the means to get the vehicle and refinance and I am trying all my options. I only owe 5000 on the truck and its 10 years old. The balance is more than the truck is worth, so I am trying to see what could I do to get it back if anything or start all over.

Memphis, TN -

Attorney Answers (3)

Alan D. Walton

Alan D. Walton

Bankruptcy Attorney - Birch Run, MI
Answered

You said your CAR was repossessed, and you owe $5000 on the TRUCK, which is more than it is worth. Bankruptcy allows you to redeem your vehicle in chapter 7, meaning you make a lump sum payment equal to what it is worth (722 redemption might loan you money to do so if you do not have a lump sum); or in a chapter 13, to pay the value over time (depending on how long ago you purchased it). It makes sense to talk to a bankruptcy attorney about your options. Try the attorney finder at www.nacba.org.

Jonathan Stone

Jonathan Stone

Bankruptcy Attorney - Hackettstown, NJ
Answered

If you take Alan's advice, which is dead on accurate, you better move quickly. Once your vehicle is sold to a bona fide purchaser for value, you are out of luck.

Legal disclaimer: Jonathan Stone is a New Jersey-licensed attorney only. The information is not intended to be... more
Robert J Adams Jr.

Robert J Adams Jr.

Bankruptcy Attorney - Chicago, IL
Answered

You might call 722 Redemption to see if you qualify for a BK loan to redeem. If not you might consider a Chapter 13 to get the car back and pay them the retail value over a period of time; up to 5 years. But, first contact an experienced BK lawyer who handles both 7 and 13.

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