Is it Time to File for an Auto Loan Bankruptcy Proceeding?

Thinking of filing for auto loan bankruptcy? Ok, you knew the lender was offering you bad credit car funding but you went ahead and took that very high risk car loan anyway and now you regret it. You cannot make any of your loan payments because you lack the funds and your lender is getting really fed up. Maybe it’s time to file for a bankruptcy discharge.

How to File for a Bankruptcy Discharge

Check the bankruptcy procedure in your state as this can vary from one state to another. Also, bankruptcy rules and proceedings can get complicated so it would be wise to ask for the help of an attorney. You can file for Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 bankruptcy is when you ask for a complete discharge of all your debts from all your creditors. You will have to file several bankruptcy forms proving inability to pay and a ‘trustee’ is assigned to your case. The proceeding usually takes about 3 to 6 months.

Chapter 13 bankruptcy is when you file a repayment plan indicating how and how long it will take you to settle your loan. People with secured debts below $871,550 and unsecured debts below $269,250 can file for Chapter 13 bankruptcy. A trustee is appointed to oversee your case and an initial meeting with your creditors is called. Assuming none of your creditors disagree with your payment plan, a hearing is set where a judge will decide to grant or deny your bankruptcy repayment plan.

Written  by: Katrina Marion

See our reviews for more on [ Bankruptcy Loans ]