Financing a Car after a Riverside Bankruptcy

Cars have become a necessary fact of life for many individuals, making it possible for us to attend work, school, and take care of essential household duties such as grocery shopping and doctors’ visits. Getting behind on car payments can lead to potential repossession – a situation that all consumers would like to avoid. Thankfully, a Chapter 13 bankruptcy may be able to help you keep your car, and if not, a discharge under a Chapter 7 bankruptcy may be able to help you qualify for another car sooner than you think.

Keeping Your Car in a Riverside Chapter 13 Bankruptcy

If you file for Chapter 13 bankruptcy, you may be able to keep your car and gain some significant advantages as well. Individuals in a Riverside Chapter 13 bankruptcy can ask the judge to ‘cram-down’ the cost of the loan, which is particularly helpful if you owe more than the car is worth. In this instance, the bankruptcy judge can modify the car loan to reflect the current value of the car, and adjust the payments so that they are affordable. Your creditor has to accept the terms, and you will be able to keep your vehicle with affordable payments. Be aware, however, that if you default on the new terms, you will be right back where you started, and without the subsequent help of bankruptcy relief, so be certain that your car payment is something you can afford to pay consistently throughout the repayment agreement and beyond.

Financing a Vehicle after a Riverside Chapter 7 Discharge

It used to be fairly common for individuals to be able to qualify for a car loan after their Riverside bankruptcy was discharged, provided they had sufficient income and would be able to make the payments. However, with the current subprime marker in a tailspin, and automakers unable to get loans from banks, you may have to depend upon dealer financing, or make other arrangements to get a car if you give up your vehicle as part of a Chapter 7 bankruptcy proceeding. However, you do have options when it comes to Chapter 7, and if you choose to reaffirm the debt, you may be able to keep your car even if other debts are discharged. The only downside is, unlike a Chapter 13, the judge will not be able to modify your loan, and any payment arrangements will have to be made with the owner of your car loan directly.

Regardless of the type of Riverside County Bankruptcy you file, there are options available for keeping your car, and purchasing a new car may be possible shortly after your bankruptcy, if you meet certain conditions. Don’t leave this important consideration to chance when you file for bankruptcy in Riverside County – contact our Riverside County Bankruptcy Law Firm and get a free case evaluation that can provide comprehensive solutions to all of your financial problems. Don’t wait until you are about to be repossessed to take action – contact us now and let our team of experienced Riverside County Bankruptcy Lawyers work on your behalf to help you with your bankruptcy filings and get you the relief from creditors that you deserve.