‘Can I Keep My House And Car?’
The financial upheaval that often comes before bankruptcy may include falling behind on car loans and/or mortgage premium payments. If this is true in your case, you should get legal advice right away if you hope to keep your house and car.
At Gudeman & Associates, P.C., in metro Detroit, we listen attentively to understand clients’ needs and priorities. With our years of experience, passion and knowledge, we will strive to help you find a way to keep your house and car if this is your goal while considering filing for Chapter 7 or Chapter 13 bankruptcy.
Consequences Of Arrearages
If you are behind on car payments, your car lender might repossess it, Not only will you lose the use and possession of it, but all payments you have made so far will leave you with no present benefit.
Likewise, if you are behind on your mortgage, the lending bank may threaten you with foreclosure or try to force you into a short sale. If you do not renegotiate your loan or take other protective measures, you may lose your home as well as all equity you had built up.
Filing For Bankruptcy May Be Part Of Your Solution
Filing for bankruptcy is the fastest, most secure way to prevent these losses, at least for now. The “automatic stay” means that for a time after you file for bankruptcy, your lenders will not be able to take collection actions by repossessing your vehicle or foreclosing on your home.
Bankruptcy may, in fact, be the best strategy for keeping your house and car despite financial trouble. Catching up on home and car loan arrearages can be part of your Chapter 13 three-to-five-year debt restructuring plan. To keep your house and/or car, you will need to stay up to date on current mortgage and car loan payments during your debt restructuring period.
In a Chapter 7 bankruptcy, your mortgage and/or car loan may be discharged, but you may have the opportunity to reaffirm those debts directly with the lenders. Consult with your bankruptcy law attorney for guidance.
Get Free Personalized Advice
To recommend the best path forward that may include keeping your house and car, we will collaborate with you on devising a strategy to meet your goals.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.