Car loan while in bankruptcy

July 11th, 2006 by Questions

My wife and I recently filled for bankruptcy (March 06). We were told that the house and our vehicle (we only have 1) would not get re-possesed. Now almost 4 months later we are told that our vehicle is getting re-possesed. We have 2 small kids and need a vehicle. However, no financial institution are able to help us. We need a car and I have no idea what to do. Our trustee said that we should just “bite our time” for the next few months. Well, that\’s hard to do when we both work and need to take the kids to daycare and such. Please help!!!

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One Response to “Car loan while in bankruptcy”



July 12, 2006 at 6:24 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:

My wife and I recently filled for bankruptcy (March 06). We were told that the house and our vehicle (we only have 1) would not get re-possesed. Now almost 4 months later we are told that our vehicle is getting re-possesed. We have 2 small kids and need a vehicle. However, no financial institution are able to help us. We need a car and I have no idea what to do. Our trustee said that we should just “bite our time” for the next few months. Well, that\’s hard to do when we both work and need to take the kids to daycare and such. Please help!!!

I understand your frustration, but ultimately whether or not your car gets re-possessed is up to the secured lender, and while most lenders have no problems allowing a person to keep a vehicle and continue to make their vehicle loan payments, there are always exceptions to this rule. As for what you should do next, you have a few choices:
1. Take public transportation temporarily until you can afford a used vehicle;
2. Contact a lender who lends in distressed situations (perhaps your trustee is aware of a few if your not).
3. Borrow from family.
Past that, there is not a great deal I can suggest, but with a little patience you will find that this is a hurdle that can be overcome.

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