You've filed a Chapter 7 bankruptcy petition. In order to pay down your debt, some of your property like your car can need to be sold. But you need your car! Is it even possible to keep your car? And if you can, how do you keep it?
You have so many questions and concerns, but relax because there is good news-you can keep your car! Chapter 7 gives you two options to keep your car: redemption and reaffirmation.
Redemption
Under Chapter 7 Bankruptcy, you can "redeem" your car by paying the creditor what it is currently worth. Essentially, you are buying your car back from the debtor.
You may want to choose redemption if your car's current value is relatively low and you owe more than your car is currently worth. After you have paid the creditor the current value of the car, the rest will be discharged by your bankruptcy.
Please be aware that this option is not for everyone! Redemption requires you to pay the creditor in one lump sum payment. However, people generally file for bankruptcy because they do not have money to pay their debts. Fortunately, redemption is not your only option.
If you have any questions about bankruptcy please call 1st California Law Inc at (949) 735-8499 for a free attorney consultation.