Bankruptcy Auto Loan

We Can Help You Refinance Your Car While in Bankruptcy

With more than 30 years of bankruptcy experience, Steve Mirsky has had many opportunities to learn how some obscure features of the Bankruptcy Code can benefit his clients. One of these little-known features has to do with problems related to property subject to repossession in Chapter 7. Known as Section 722 redemption, this underused provision applies to car loans and gives you the chance to settle with your lender for the actual value of your car.

Under Section 722, we can help you find a lender who is willing to work with bankruptcy debtors. The new lender issues a new loan secured by the original car, and you use the loan to buy out your original lender. Because you're walking away from the difference between what you owe on the car and what the car is actually worth, car loan redemption can reduce your monthly car payments while avoiding the risk of repossession.

Call (866) 654-2003 or (301) 637-0412 to learn about car loans and redemption in bankruptcy

With offices in Rockville, Frederick and Laurel, the law firm of Steven E. Mirsky, LLC, helps Maryland clients get the most out of bankruptcy through protecting you from creditors, helping you keep your assets, and maximizing the benefit of your bankruptcy discharge.

Although secured creditors are entitled to satisfy their claims against you by recovering possession of collateral, they can only do so with bankruptcy court permission. While your auto finance company is preparing its motion for relief from the automatic stay to repossess your car, our lawyers are identifying the value of your car and lining up specialized lenders willing to finance car loan redemption agreements in bankruptcy. (Yes, they're out there.) In the typical case, our client might owe $15,000 on an SUV with a Blue Book value of $9,200.

Meanwhile, the amount of your monthly payment was based on an original purchase price of $30,000 or more, and might be $700. We help you find a replacement loan to cover the $9,200 buyout price with your original lender, you get a discharge on the remaining $5,800 of debt, and your new payments with your car loan redemption lender might be about $300.

Our ability to help clients keep motor vehicles otherwise subject to repossession in Chapter 7 while reducing their monthly payments is just one of the ways we help people get the most out of their rights under the Bankruptcy Code.

For a free consultation about car loan redemption or any other special problems that might arise in a Chapter 7 bankruptcy case, contact an experienced debt relief attorney at the law firm of Steven E. Mirsky, LLC, in Rockville, Frederick or Laurel.