Overhaulin'

When filing bankruptcy in CA, can car loans be discharged as well?

My friend is planning on filing bankruptcy, we were wondering if her car loan will be discharged and she'll get to keep her car.

Public Comments

1. car has to go
2. If she doesn't reaffirm and pay for the car, then she loses it. Bankruptcy has changed and depending on her circumstances may not be able to walk away debt free anyway. It is up to the law, court & creditors as to what she will/will not be able to do. But no one gets to keep the asset if they don't pay for it, bankruptcy does not work that way. Attorneys usually give free consultations, sounds like she needs to speak with one.
3. Cars and homes are mortgaged property. Either a resigning has to take place and make the payments or let the property revert back to the mortgage holder.
4. If her loan is discharged, no she won't get to keep the car. She might have to option to exclude the car from the bankrupcy filing, but then she'll have to pay the loan.
5. No - you can't keep your car. A car loan is a secured loan and the car is the collateral. So they would take your car and sell it to get at least some of their money back. You can file bankruptcy on the 'remainder' but your car will be gone. And you won't be able to "finance" another car for up to 10 years after your Bankruptcy....