How does it work when you file for bankruptcy?

I know the laws have changed in the past year or so. What are the pros and cons? If we currently have an auto loan, would we have to surrender the vehicle?

This entry was posted on Monday, January 26th, 2009 at 7:25 pm and is filed under Bankruptcy Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

2 Responses to “How does it work when you file for bankruptcy?”

1. zyberianwarrior Says:
   January 27th, 2009 at 7:42 am

   Bankruptcy is a last resort option and now with the changing laws you will be referred to a debit cousnler who will work with you to get your credit back in order.

   Pro debt free con on your cedit report for the next 10 years. First two years forget buying anything of decent value. Auto and house are essential items and you may be able to save them only a bankruptcy lawer can advise you on that.

2. paleblueshoe Says:
   January 28th, 2009 at 10:42 pm

   If you want to keep the vehicle, you’ll have to continue making payments.

   Bankruptcy is for people who, through no fault of their own, have experienced a real financial disaster. It is NOT to be used as a ‘financial plan’ for a casual ‘emergency’ when careful handling of expenses and income can take care of getting the bills paid.

   Talk to a bankruptcy attorney, or go directly to a debt management organization and find out what they can do for you.