Free Consultation

Unsecured car loan

I have a vehicle loan in the amount of 10,000$ however no lien is registered against the vehicle. The bank gave me loan and did not require security. Value of the vehicle is similar, maybe slightly lower.

Due to an additional 25m in unsecured credit card/ credit line debt I have begun to consider declaring bankruptcy.

How will my vehicle and loan for it fit in, all the scenarios I`ve read involve a secured loan. My preference would be to keep the loan, and keep the vehicle, continuing to make the payments to it after bankruptcy.

Is that an option?

One Response to “Unsecured car loan”

A licensed trustee said...

If the loan is unsecured and you file for bankruptcy then it will be included in the bankruptcy (ie you will not be required/permitted to continue to make payments towards the debt. Depending on where you live and the appraised value of the car, you will be able to keep the car, but you may have to pay your trustee in order to do so – the amount you will be required to pay your trustee will likely be significantly lower than the loan amount so at the end of the day you’ll actually be ahead of the game…