Johns Creek Bankruptcy: I Need to Keep My Car

Woman checking papers

Question: I have considered filing bankruptcy because the bills have been piling up ever since I lost my job. I did get another job but it doesn't pay as much. I'm behind on my credit cards and have medical bills from a few years ago when I went to the hospital. Now I found out that I'm getting sued.

I owe places like Springleaf Financial money and I just can't afford to pay them back. Everything got much worse when I went through a divorce two years ago and I really haven't fully recovered from that. Springleaf is calling me all the time and I'm not sure what to do.

I have a car loan with Springleaf that I owe money on and I'm scared that they will repo the car. I have not made a car payment in 5 months and I got a phone call saying they were looking for the car. It's my only car and I need it. I can't get to work or anything without a car.

I got a new job offer and I'll be making more money than now. I start the new job in two weeks. Can I keep the car if I file bankruptcy?

I live in Johns Creek.

Answer: If you file a chapter 13 bankruptcy you are able to put the car payment arrears into the bankruptcy plan. So you can take the 5 months that you owe on the car and pay them off through the chapter 13, usually over 60 months (5 years). You will have to make the car payments moving forward, but the arrears can be paid through the plan. That way you can keep the car.

If the car is repossessed, however, you can file a chapter 7 to eliminate the car debt. That is the debt you are responsible for if the car is sold for less than what you owe on it.

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