Retaining your vehicle in a Chapter 7 bankruptcy is not often a problem as long as you are current on the loan payments. However, obtaining a new (to you) vehicle during or immediately after a bankruptcy requires more planning and consideration. The reality of life in Upstate New York is that the vast majority of people seek to purchase or lease a vehicle every 5-10 years, and usually this requires getting approved for a loan or a lease.
People thinking about filing a Chapter 7 bankruptcy are often rightly concerned about being able to obtain auto financing with a bankruptcy on their credit report. If you need reliable transportation, in some cases it may be best to seek new financing or a new lease for a vehicle before you file. Through a process called “reaffirmation of debt” in a Chapter 7 bankruptcy proceeding, you will be allowed to keep your vehicle and the loan or lease will be undisturbed. If acquiring a car is not possible prior to a bankruptcy, another option may be arrange for a co-signer on a loan/lease once the bankruptcy is complete.
To explore which strategy is most appropriate to your situation, call us today at (518) 782-9100 for your free consultation!