If you file a Chapter 7 bankruptcy case and have an outstanding car loan, you have the option of doing any one of the following:

A.    Surrender your car;

B.    Reaffirm your car loan;  or

C.    Redeem your car from the debt.

These options exist for all bankruptcy filings in Northeastern Pennsylvania and Central Pennsylvania, including Luzerne County, Lackawanna County, Monroe County and Lycoming County:  From Wilkes-Barre to Scranton to Hazleton to Stroudsburg to Willliamsport.

Surrendering your car involves returning the car back to the lender, after which you will have no further personal liability to the lender.

Reaffirming your car loan involves your agreement to continue to be personally liable on the car loan in order to keep the car.  There is more detail involved with this choice, which you can read by clicking here: Reaffirming Car Loans.

Redeeming the car involves paying a lump sum amount to the car lender that is equal to the value of the car in order the keep the car loan. This option is best when your car is worth less that the balance that you owe on your car loan. You can read more about this option by clicking here:  Redeeming Car Loans.

If you have any questions about these options, please call me or send an me an e-mail.