Basically, it all depends. When a West Jordan Chapter 7 Bankruptcy is filed, this results in an automatic stay, and this stops creditors from collecting further debt from you or taking your car away. However, if you keep the auto, you must continue to make payments via the same terms. Your choices are to either reaffirm, redeem or surrender the debt.
Reaffirmation
If your creditor agrees to renegotiate the original terms of your debt, this means you’re reaffirming your debt. The bankruptcy never took place and life goes on as if nothing happened. Usually, creditors give better terms when this happens. However, if you’re grossly in arrears, creditors may not be willing to renegotiate.
Redemption
Most people never use this option. But it allows you to give your creditor a lump sum payment that equals the car value as opposed to the balanced owed.
Surrender
You have the option to return the car that you’re paying on. But it must be done within 30 days of the Creditors Meeting. You will no longer be responsible for this debt. If your goal is to change your interest rate or modify the loan terms then you should explore filing a West Jordan Chapter 13 Bankruptcy.
8833 S. Redwood Road, Suite C2
West Jordan, Utah 84088United States
Telephone: (801) 432-8682
Ryan E. Simpson
