Hi, Matt McArthur, attorney at Clear Counsel Law Group here. Today I want to address one of the most common questions we get, and it's can I keep my car and file for chapter 7 bankruptcy?
The answer is usually yes.
It depends upon the circumstances.
We have different tools at our disposal to be able to help you be able to keep your car.
Now in determining what the best course of action is for you, we're going to look at whether or not you're current on your vehicle, on your current monthly payments or whether you've fallen behind.
We'll then determine what the most appropriate tool that we have at our disposal is for helping you keep your car.
Now the most common type of issue in terms of keeping your car, or perhaps strategy of keeping your car, is what we call a retain and pay.
That's because in the state of Nevada we're no longer required to do reaffirmation agreements, which I'll touch on in just a minute.
Let Me Explain How You Can Keep Your Car
The retain and pay option is where you're current on your car and you just want to keep making payments to your lender. That is perfectly acceptable under Nevada law in most circumstances. If you want to keep your car, just keep making the payments and you shouldn't have any issues with your car lender.
Once the car is eventually paid off they'll release the title to you and you'll have your car as you normally would as though you had never filed for bankruptcy.
In some circumstances it might make sense to do a reaffirmation agreement and that's where you promise not to wipe out the car lender, the loan owed to the car lender, which would mean you'd still be responsible for the loan no matter what happens with your bankruptcy and you continue to make payments to the car lender just as you would under a simple retain and pay option.
Now if you've fallen behind on your car, we may be able to do a redemption, and we can sometimes do redemptions where you're current on your car as well.
I Will Now Explain Redemption
Think of redemption kind of like a refinance on your car.
Under that circumstance we would get a new lender to pay off the old loan and you start a new loan with the new lender in order to bring you current on your vehicle and to be able to start moving forward with affordable monthly payments for your car.
Now if you're interested in any one of these options in a little bit more detail, we do have other videos on those specific subjects where we do dive into it a little deeper than this video.
For purposes of this video, the simple answer is there's a way to keep your car in a chapter 7 in many circumstances, we have many different ways. If you're concerned about keeping your car in a chapter 7, know that there's a way to keep it and come and speak with me and I'll give you the best advice for your particular financial situation.
Please come in and see me soon. Matt McArthur, bankruptcy attorney.
Our consultations are free.
I hope to hear from you soon.