Summary
Filing for bankruptcy with a negative bank balance does not impact the process, as all debts, including overdrafts, are included in the filing. In Chapter 7 bankruptcy, if car payments are past due, you can either surrender the car or reaffirm the debt to keep it. Reaffirmation requires continued payments and can be denied by the lender if they doubt your ability to pay or if the cars value is less than the loan balance. Its advisable to contact your lender and consult a bankruptcy attorney for guidance.Full Conversation
What happens if my bank balance is negative the day I file bankruptcy
Hey Ren! If your bank balance is negative on the day you file for bankruptcy, the negative balance itself won't impact the bankruptcy process. Your debts, including any overdrafts, will be included in your bankruptcy filing. It’s important to list all your financial obligations when filing.
What state are you located in? This can help in providing more specific information related to bankruptcy laws in your area.
What happens if my car payment is past due when I file
Hi Ren! If your car payment is past due when you file for bankruptcy, the following can happen:
- Chapter * Bankruptcy: You may need to surrender the car or reaffirm the debt.
- Chapter * Bankruptcy: You can include the past-due payments in your repayment plan.
Which type of bankruptcy are you considering?
Chapter *
Hi Ren! In Chapter * bankruptcy, if your car payment is past due, you generally have two options:
- Surrender the car and discharge the debt.
- Reaffirm the debt and continue making payments.
It’s crucial to understand the implications of each option. Are you leaning towards keeping the car or letting it go?
Keeping
Hi Ren! If you decide to keep your car during Chapter * bankruptcy, you'll need to reaffirm the debt. This means you agree to continue making payments and are legally obligated to repay the loan. Failure to do so may result in repossession. Have you discussed this with your lender yet?
Not yet
Hi Ren! It's important to contact your lender as soon as possible to discuss your intentions to reaffirm the debt and keep your car. They can provide details on the reaffirmation process and any necessary paperwork. Have you consulted with a bankruptcy attorney to guide you through this process?
Can they deny reaffirmation
Hi Ren! Yes, a lender can deny reaffirmation in a Chapter * bankruptcy. They may do so if they believe you won't be able to keep up with the payments or if the car's value is less than the loan balance.
Have you considered discussing this possibility with a bankruptcy attorney?
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