If you’re one of the many people declaring bankruptcy that feels like they’re between a rock and a hard place with their car, then we may have good news for you. While the redemption process isn’t the right choice for every buyer – and in fact, we may recommend against it depending on your situation – it could also be the best way for you to move forward with your bankruptcy while still keeping your car.
If you are considering bankruptcy but it’s the idea of giving away your car that’s preventing you from doing it, then you should reach out to The Law Offices of Paul Y. Lee. Call us today at 951-755-1000 to let us know what your hesitations are. We can help you better understand the process and make an informed decision about whether or not it’s the right choice for you.
The typical options for your car during a bankruptcy are less than ideal
It’s common for a debtor to owe a lot more on their vehicle than it’s worth by the time they get to bankruptcy. That said, they still want to keep it. They need it to get to work, or to get their kids around. While lenders will generally approve you keeping your car, there’s one big stipulation: They will want full payment on your current loan. Unless you have thousands of dollars lying around to pay them, this is likely not an option.
You may also be able to stick with your current loan and continue making payments as you are today. That said, most people are very behind on their bills when they file for bankruptcy. If you’re behind in your payments on your car, then this may not work for you. That said, the only other option is to give the car back to the bank. Then you have no vehicle to get to work. Or is that the only option? Thankfully The Law Offices of Paul Y. Lee has other options.
There is a solution available to you
Working through a redemption program with your bankruptcy attorney and your creditor could offer you a better solution. It allows you to continue making payments on your car but to pay the creditor a fair market value for the vehicle – not how much you actually owe. This can work well for both you and the creditor. You get to keep your car and the creditor doesn’t lose their entire investment.
Are you ready to year more about this option?
Do you want to learn more about how you could lower your monthly payment on your car? Do you want to pay either the same number of payments you were intending to pay, or possibly fewer payments? This could be a real possibility.
The first step is to reach out to The Law Offices of Paul Y. Lee at 951-755-1000 for a free bankruptcy evaluation. We can let you know what your options are, which ones might work best for you, and what you can expect from the process. Call today and take control of your life!
