If you obtained a loan to purchase your car, chances are the company that lent you the money has a lien against the car. This means if you don’t make the payments, the lender can repossess your car. In bankruptcy proceedings, you can keep your car by signing a new agreement with the lender to continue making your car payments. This opportunity to renegotiate your car loan sometimes results in a lower interest rate, lower monthly payments, or a reduction in the principal balance due on the loan, especially in those cases where you owe more on your car than it is worth.
To find out what this could mean for you in your situation, call me (507) 663-1211 or email me to schedule a free confidential appointment.