Legal Question in Bankruptcy in Wisconsin

Auto Loan Voluntary Surrender of Vehicle, Judgement Liens, Bankruptcy

Yes, deficiency judgments following surrender or repossession of a vehicle are normally dischargeable in bankruptcy, provided that you are otherwise eligible to file and follow up with all the requirements which go with filing bankruptcy including debt counseling. Anyone filing bankruptcy can also protect other creditors such as other vehicle loans or mortgages upon which they are current, by reaffirming the debt and continuing to make the payments. However, if you do not file bankruptcy before judgment is entered, the judgment serves as a lien against any real estate you own in any county where the judgment is docketed, and can also result in wage garnishments and other collection measures unless removed following bankruptcy.

Re: Auto loan

Yes - you would then have a choice of reaffirming (keeping and continuing to repay as originally agreed), surrendering or redeeming at full price (paying off) your other secured loans.