Free Consultations Available

San Jose: (408) 465-4472
Oakland: (510) 279-8136
Salinas: (831) 218-5925


If you have a car loan, and want to obtain bankruptcy relief, and keep your car, you have several options.

If you file a chapter 7, you can reaffirm the debt. But this may not be your best option.

You may find that a better option is to file a chapter 13. You can propose a chapter 13 plan that pays your car loan, and possibly wipes out all other debts completely. Depending on your circumstances, such a chapter 13 plan may offer the following advantages:

- reduce the principal of your car loan down to market value of your car,

- reduce the interest rate on your car loan down to market interest rate,

- wipe out all other debts,

- stretch your payment out over 5 years.

But another advantage of such a plan is the option it gives you AFTER the court approves your plan. Let's say after your plan is approved, you lose your job, or your car develops mechanical problems. You may be able to return the car, and go back to the bankruptcy court, and ask the judge to modify your plan and reduce your monthly payments.

If you have a car loan, and want to learn more about your options in bankruptcy, please contact us.

Contact The Fuller Law Firm

Serving Clients in English, Spanish, Cantonese, Mandarin and Persian

  • Please enter your name.
  • Please enter your email address.
    This isn't a valid email address.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please select an option.
  • Please enter a message.