Financing a Car after filing for a San Bernardino Bankruptcy

Only a few years ago, financing a car after a San Bernardino bankruptcy was not a difficult prospect. However, with the current downturn in the economy, financing a car after a San Bernardino bankruptcy can prove challenging. However, there are options that may allow you to keep your current vehicle, or finance a new one, if you meet certain conditions.

If you file for Chapter 7 bankruptcy, you can still keep your vehicle, provided that you are able to make the payments as required by your finance agreement. If you do decide to keep your vehicle, you will be required to reaffirm the debt during the San Bernardino bankruptcy proceedings. Reaffirming the debt will exempt it from the San Bernardino bankruptcy discharge, and will allow you to keep your vehicle under its current financing terms. This may be a good option if you can afford the payments once your other debts have been discharged.

If you file for a Chapter 13 bankruptcy, you can keep your vehicle under the terms of the repayment agreement. You will be required to pay any past due payments over the course of your repayment plan, while still keeping current with the current payments that you owe as they come due. However, filing for San Bernardino Chapter 13 bankruptcy gives another benefit, in that the judge can modify the terms of your loan agreement, including the interest charges, the amount of principle that you owe, and/or your monthly payments. In most instances, your automobile financing company will be bound to accept these terms, and you will be able to keep your car while making more affordable payments.

If you cannot afford the payments on your car, you may be able to get the financing company to take possession of the vehicle and forgive the difference between any sale and what you owe. If you are able to sell your car for what you owe and pay off the debt, you may be able to get another car with more reasonable payments, depending upon your current financial situation.

Financing a car after a San Bernardino bankruptcy can prove difficult. If you need advice about your bankruptcy and how it will affect your ability to get a car loan, it’s in your best interests to contact a reputable San Bernardino County Bankruptcy Attorney. Our firm can handle your case from start to finish and give you relevant, helpful advice as to your best options when it comes to financing a car after a San Bernardino bankruptcy. Contact us today and arrange for a free initial San Bernardino Bankruptcy case evaluation – the sooner you start the planning process, the more prepared you will be to take advantage of any financing options you may have after your bankruptcy discharge.