Most debtors filing Chapter 7 bankruptcy want to be able to keep their vehicles. An Arizona bankruptcy lawyer may advise the debtor to pay the lender only the current retail value of the vehicle in lieu of the entire loan balance. However, redeeming a vehicle loan has its drawbacks.
Most debtors can keep their vehicles when they file bankruptcy. A complication arises when a debtor has a vehicle loan. A competent Arizona bankruptcy lawyer will advise that to retain the car, the debtor may have to stick his neck on the line and reaffirm the car loan, making the bankruptcy null and void with respect to a huge debt. But there may be some alternatives.