WHAT HAPPENS TO YOUR CURRENT CAR LOAN WHEN YOU FILE FOR BANKRUPCY?

-I AM CURRENTLY PAYING MY CAR LOAN BUT WANT TO FILE FOR BANKRUPTCY. DO I LOOSE MY CAR OR HAVE TO CLOSE THAT LOAN ACCOUNT THAT PAYS FOR MY CAR?It depends on what you want to do.



If you feel you can not continue to make the payments you can include it in your bankruptcy so that it does not affect your credit at a later time.



If you can continue to make the payments, and feel like that is what you would like to do that is also an option.
In most states a car loan is not discharged in bankruptcy. You get to keep your car but you have to continue to make payments on your car loan until it is paid off. If you default on your payments the lender can repo your car the same as always.