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Redeeming a Vehicle through Bankruptcy

If your vehicle has a lien on it at the time you file your Chapter 7 Bankruptcy, you generally have three options. First, you can choose to surrender the vehicle and not have to repay the loan. This option is great if you simply want out from under a loan on a vehicle you no longer want to keep. For many people, however, they need to keep their vehicle to travel to and from work, school, the doctor's office, etc. The second option is that you can reaffirm on the vehicle loan. This means that you will keep the vehicle and agree to repay the loan at the terms that were in place before you filed your Bankruptcy case. This is a simple option that enables you to continue making your car payments and get some post-bankruptcy positive reporting to improve your credit score. The third option is one that not quite as many people are familiar with, but it can be very advantageous in certain situations: this option is to redeem your vehicle.

If your vehicle has a lien on it at the time you file your Chapter 7 Bankruptcy, you generally have three options. First, you can choose to surrender the vehicle and not have to repay the loan. This option is great if you simply want out from under a loan on a vehicle you no longer want to keep. For many people, however, they need to keep their vehicle to travel to and from work, school, the doctor's office, etc. The second option is that you can reaffirm on the vehicle loan. This means that you will keep the vehicle and agree to repay the loan at the terms that were in place before you filed your Bankruptcy case. This is a simple option that enables you to continue making your car payments and get some post-bankruptcy positive reporting to improve your credit score. The third option is one that not quite as many people are familiar with, but it can be very advantageous in certain situations: this option is to redeem your vehicle. This means that you keep your vehicle and pay the loan holder the current value of your vehicle in one lump sum. If you have the funds available to redeem your vehicle at its current value, this can be a great option. At O'Bryan Law Offices, we will work with you to determine the value of your vehicle and whether redemption is the best choice for you. Make an appointment today to discuss your vehicle options with one of the experienced bankruptcy attorneys at O'Bryan Law Offices. Call us today at 502-400-4020 for a free bankruptcy consultation.

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