Legal Question in Bankruptcy in North Carolina

Re: Lower payments on bankruptcy

A person who files a petition in bankruptcy and has an automobile has the option of keeping it or surrendering it. In some circumstances he can redeem the car for the fair market value, that is just pay, in a lump sum, what it is worth regardless of the amount of the debt. The basic concept of bankruptcy is that debt is discharged but liens are not removed. Thus, generally, if you keep the car you must pay at least the fair market value. If it was purchased within 910 days and used for personal use, you must pay the full debt. If you surrender the car, you pay nothing because the debt is discharged. The only way one can get to reduced payments is if the creditor agrees to accept lower payments. If you are "in" bankruptcy, your lawyer should have explained all of this.