If you are struggling to keep up with your car payments in Mesa, filing for bankruptcy may provide a path toward financial relief while potentially allowing you to keep your vehicle. Whether you are facing missed payments, collection calls, or the threat of repossession, a Mesa car loans & bankruptcy lawyer from Lerner and Rowe Law Group can review your circumstances and explain your options.
Bankruptcy does not automatically mean you have to give up your car. Depending on whether you file Chapter 7 or Chapter 13 bankruptcy, you may be able to protect your vehicle, address past-due payments, or restructure your debts. Our Mesa bankruptcy attorneys can help you determine which approach may be right for your financial situation.
Can I Keep My Car If I File Bankruptcy in Mesa?
One of the biggest concerns people have when considering bankruptcy is whether they will lose their vehicle. The answer depends on several factors, including the type of bankruptcy you file, how much equity you have in the vehicle, and whether you are current on your loan.
Under Arizona debtor law, certain property may be protected from creditors. When you file bankruptcy, an attorney can review your assets and debts to determine which exemptions may apply to your circumstances.
Chapter 7 Bankruptcy and Car Loans
Chapter 7 bankruptcy is generally designed to eliminate qualifying unsecured debts, such as certain credit card balances, medical bills, and personal loans. Car loans are secured debts, meaning the lender generally has a lien against your vehicle.
Filing Chapter 7 does not automatically eliminate the lender’s lien. However, you may have options for keeping your vehicle depending on your circumstances.
For example, if you are current on your car payments, you may be able to continue making payments and retain your vehicle. You may also have the option of entering into a reaffirmation agreement, which allows you to continue being responsible for the car loan under its existing terms.
If you have fallen behind on payments, your options may be different. An attorney can review your situation and explain whether negotiating with the lender, reaffirming the debt, surrendering the vehicle, or pursuing another option makes sense.
Our Mesa bankruptcy lawyers can help you understand the potential consequences before you make this important decision.
Chapter 13 Bankruptcy and Car Loans
Chapter 13 bankruptcy may be particularly helpful for Mesa residents who have regular income but are struggling with past-due car payments. Rather than liquidating assets, Chapter 13 generally allows you to reorganize qualifying debts through a court-approved repayment plan lasting three to five years.
If you are behind on your vehicle payments, your repayment plan may allow you to catch up on those missed payments over time. The automatic stay that takes effect after filing can also halt many collection activities, including repossession efforts.
In some circumstances, Chapter 13 may also provide an opportunity for a car loan cramdown. This can potentially reduce the secured portion of certain vehicle loans to the car’s current value, with the remaining balance treated differently under the bankruptcy plan. Whether a cramdown is available depends on the specific facts of your loan and bankruptcy case.
How Can a Mesa Car Loans & Bankruptcy Lawyer Help?
Bankruptcy involves extensive paperwork, strict requirements, and important decisions that can affect your finances for years. Working with an attorney can help you understand your options before filing and avoid mistakes that could negatively affect your case.
A Lerner and Rowe Law Group bankruptcy attorney can:
- Review your income, expenses, assets, and debts
- Help determine whether Chapter 7 or Chapter 13 may be appropriate
- Explain how bankruptcy could affect your car loan
- Identify potentially applicable Arizona exemptions
- Help address missed vehicle payments and repossession concerns
- Prepare and file the required bankruptcy documents
- Communicate with creditors and help you navigate the bankruptcy process
Lerner and Rowe Law Group has a dedicated bankruptcy team serving Mesa and throughout Arizona. The firm handles both Chapter 7 and Chapter 13 bankruptcy cases and offers free consultations to help potential clients understand their options.
Contact a Mesa Car Loans & Bankruptcy Lawyer Today
If you are struggling with car payments, facing repossession, or dealing with overwhelming debt, you do not have to figure out your options alone. The Mesa bankruptcy team at Lerner and Rowe Law Group can review your circumstances, explain your potential options, and help you determine whether bankruptcy may provide the financial relief you need.
Call Lerner and Rowe Law Group now to schedule a free consultation. You can also fill out the online contact form or connect with a representative through LiveChat. Our team is available 24/7 to help you take the next step toward greater financial stability.