Legal Question in Bankruptcy in Ohio

The following answer does not constitute legal advice and is not intended to create an attorney-client relationship. For further consultation about legal representation, go to BensonBankruptcy.com.

ANSWER:

It depends on whether you are filing under Chapter 7 or Chapter 13, and whether you decide that surrendering is better than keeping your car.

If you are filing under Chapter 7 and are current on payments, some lenders will allow you to keep the vehicle as long as you do not fall behind. However, there are other lenders who routinely repossess vehicles when a debtor chooses not to sign a reaffirmation agreement. But there is another issue you should consider. Many cars and trucks are worth much less than the amount of the loan used to purchase them. Thus, you should see if you fall into this category and, if you do, explore your options for purchasing a new vehicle post-discharge.

If you are filing under Chapter 13, you can pay for your vehicle through your plan. But I would strongly advise against doing this on your own. There are many difficulties you can encounter in a Chapter 13 that require legal assistance. Many people each year waste their money by attempting to file pro se and end up having their case dismissed.

Good luck.