Can I Keep My Car After Filing Bankruptcy in Colorado?
Keep my Car?
Yes, really…
I want to know.
Can I keep my car after filing bankruptcy in Colorado?
The short answer is YES.
Provided you meet all the requirements.
It’s always best to speak with an attorney.
And check your local laws.
Let’s get things under way.
The Three Most Popular Ways to Keep Your Car After You File for Bankruptcy Are…
1) Reaffirmation
For instance…
With the first option, the legal term is a reaffirmation of the auto loan.
In this situation, your attorney can negotiate with your lender and see if they can get better terms on your loan.
At this point…
They can also try to negotiate a lower interest rate.
Remember that there is no guarantee that the lender will cooperate with better terms or rates.
At least…
If the lender agrees to adjust the loan term and lower the interest, you may save money on your monthly payment.
However, if your lender shows no flexibility with your loan, you may be better off including the loan with the bankruptcy and surrendering the car.
Always ask your attorney for advice on the best options for your situation.
With a reaffirmation, you essentially take on a new car loan for your old car.
If your attorney feels you can do this and responsibly repay the loan, he’ll fill out the necessary paperwork for you to sign.
The decision will ultimately be the judge’s; they can reject the reaffirmation agreement.
2) Ride Through
The next option is to ride through the existing loan.
This option may be a good choice if you are near the end of the loan and the car is still in good working condition.
The ‘Ride Through’ may not be available in all states, so you will need the advice of your attorney as to what your jurisdiction allows.
If you choose to do a ride-through, you may no longer receive monthly statements, so your responsibility will be to continue making the payments.
Because of the laws prohibiting lenders from contacting you regarding unpaid debt, this may be a little riskier.
You’ll need to pay close attention to the due date and pay the payment on time so your vehicle isn’t repossessed.
3) Redeem
Another choice is to redeem the vehicle and pay cash for the true market value of your car.
For example, if you owe $10,000 on a car worth $5,000, you can pay the market value of $5,000 and take over ownership of the vehicle.
The balance gets written off with the rest of the debts.
If you are considering keeping your car after filing, consider the following…
With all this said, I also want to suggest that you may choose to release any car payments with the bankruptcy, especially if you owe more on your car than it is worth.
If this is your situation, it might make more sense to get rid of your car.
Then search for a sub-prime loan and get a new car so you can start over without the negative equity.
A Word of Caution…
Keeping your car after filing for bankruptcy may not always be to your best advantage.
As I mentioned early in this article… you always want to consult your attorney for advice on what’s best for you.
Getting a Car After Bankruptcy
If you filed for Chapter 7 bankruptcy, you probably had difficulty getting a new car loan.
You may even think your chances of getting another car loan are slim.
But this isn’t true.
However, if it’s possible…
It’s a good idea to wait a bit after you get your discharge papers to try and get financing again.
But we understand that everyone’s circumstances and needs are different.
In fact…
If you need a car right now, call us at 720-266-4941 today. So you can get started on getting your vehicle.
Next…
In brief let’s look at how subprime lenders work.
Subprime Lenders:
For the most part, a subprime lender is a good option for you if you want to get approved for an auto loan.
What’s more…
Subprime lenders are usually found at special finance dealerships like JFR & Associates in Littleton.
Subprime lenders often specialize in lending to people with low credit scores due to bankruptcy or other unusual financial circumstances.
Remember that not all car dealerships offer subprime or special financing programs.
In the event that…
You’re in the market for a new car and have a bankruptcy or poor credit…
Look no further…
Finding a Special Finance Dealership
For the most part…
Here in the Denver area, getting approved for an auto loan from a subprime lender can be challenging if you have bad credit, bankruptcy, or no credit history.
Don’t get discouraged or give up…
And don’t worry. There’s a solution to your problem…
You’ll be glad to know.
Even if you got turned down in the past for a car loan.
There is light at the end of the tunnel.
Equally important… there are many options available to you today.
JFR & Associates is one of the leading subprime lenders in Colorado and has been helping people get approved for auto loans for over 20 years.
I’m sure you’re going to love what we have to offer…
Our office provides you with competitive rates, flexible financing terms, and expert customer service.
In fact, our customers have rated us as one of the best car dealerships in Colorado.
I can’t stress this enough…
At JFR and associates, we have teamed up with the best subprime lenders in the marketplace. So you can relax and know that you’re in good hands.
Most importantly…
We’ll shop the lenders to ensure we get you the best terms and interest rates possible.
We invite you to come in and find out how to buy your next vehicle without all the stress, hassle, and frustrations.
Now here’s the next step…
Give us a call at 720-266-4941 or send an email so we can get you your car.
P.S. Let’s look at the highlights of this article.
1) If you live in Colorado, chances are good that you can keep your car after filing for bankruptcy. However, there are some stipulations that you need to meet.
2) There are three ways to keep your car after you file for bankruptcy.
-
- Reaffirmation
- Ride Through
- Redeem
3) Keeping your car after filing bankruptcy isn’t always in your best interest. Sometimes it makes sense to turn it back in the bankruptcy and and get a new car.
With this in mind, it’s always wise to consult with an attorney familiar with your state’s laws.
Just click below to get started now.