If I go bankrupt because of students loans, will I lose my car that I am making payments on? 27 Answers as of June 14, 2013

I am really behind on my students loan and am worry that I will lose my car. I have never miss a payment on my car plus it is my only way around.

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Debt Relief Law Center | Roger J. Bus
Bankruptcy generally does not Discharge student loans, hardship discharges on student loans are rare and hard to obtain.
Answer Applies to: Michigan
Replied: 6/7/2012
Robert Peters, P.A.
Robert Peters, P.A. | Robert L. Peters
Make sure to consult an attorney regarding the student loans. Most student loans are not dischargeable. It is difficult to discharge student loans but is possible under certain circumstances. You would have to prove to the court an undue hardship for the entire remainder of the student loan term. This would require an additional lawsuit within your bankruptcy case called an adversary proceeding to determine if your student loans would be dischargeable. In any event, keep paying your car payments and the student loan scenario should have no affect on keeping your car.
Answer Applies to: Florida
Replied: 6/6/2012
Olson Law Firm | Edward M Olson
If we assume that your equity in the car does not exceed the exempt amount, then no. You will not lose your car as long as you continue to make the contract payments.
Answer Applies to: Michigan
Replied: 6/5/2012
Rosenberg & Press
Rosenberg & Press | Max L. Rosenberg
First, you cannot discharge student loans in a Chapter 7 bankruptcy. It would be foolish to file a Chapter 7 bankruptcy to try and remove student loans. There used to be certain loopholes. They no longer exist. The only way to get out of student loans is if you have a severe in extreme hardship. This threshold is almost impossible to reach. If you are trying to keep your car you can file a reaffirmation agreement. if you hire an attorney with experience in bankruptcy law they will tell you all of this. If you try to file without an attorney you are very foolish.
Answer Applies to: Connecticut
Replied: 6/5/2012
Barbara Fontaine, Esquire | Barbara Fontaine
The original content and subject should not be modified, otherwise your answer will not be valid. Ordinarily you cannot discharge student loans by bankruptcy, so unless you have lots of other debt, bankruptcy would not help. You can usually keep your car if you reaffirm the loan and the court finds that you can afford to reaffirm. If it is just the car and student loans, do not declare bankruptcy. If more, consult an attorney.
Answer Applies to: Rhode Island
Replied: 6/5/2012
    Alvin Lundgren | Alvin Lundgren
    As long as you make payments on your car you will be able to keep it - unless you get sued and a judgment is issued against you. Then the judgment holder can have the sheriff sell your car at an auction - but only if you have a lot of equity in the car.
    Answer Applies to: Utah
    Replied: 6/1/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Student loans are not discharged in bankruptcy unless you can't pay them now and can't pay them in the future, (for example if you are disabled). This is very difficult to prove. This will not affect your car, as long as you keep making the payments.
    Answer Applies to: California
    Replied: 6/1/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    First, you cannot get rid of student loans in a bankruptcy so I would not advise you to file this case if you are trying to get rid of student loans. Second, as long as you make your payments on the car you should not have an issue keeping the car.
    Answer Applies to: California
    Replied: 5/31/2012
    Macey Bankruptcy Law
    Macey Bankruptcy Law | Adela D. Estopinan
    You cannot discharge most student loans through bankruptcy. That being said, you can often make arrangments to keep your car. A local bankruptcy attorney can review your particular situation.
    Answer Applies to: Florida
    Replied: 5/30/2012
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    In Texas, your car is exempt from the bankruptcy estate as long as you reaffirm the debt and continue to make your car payments.
    Answer Applies to: Texas
    Replied: 5/30/2012
    Steven Harrell, Attorney at Law | Waymon Steven Harrell
    If you file a Chapter 7, you would not be able to discharge the student loan. You could reaffirm the car note, as long as you maintain your payments and the insurance on the vehicle.
    Answer Applies to: Georgia
    Replied: 5/30/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Student loans are not dischargeable so if that is why you are filing bankruptcy then don't.
    Answer Applies to: New York
    Replied: 5/30/2012
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    No.
    Answer Applies to: New York
    Replied: 6/14/2013
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    Federally subsized, and most other student loans cannot be discharged in a bankruptcy case. You CAN, however, deal with them by filing a Chapter 13 case, but you should contact an attorney who primarily handles cases in that area.
    Answer Applies to: Ohio
    Replied: 5/30/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Bankruptcy does not eliminate student loans. Depending on what your attorney files, you may or may not keep a car.
    Answer Applies to: Georgia
    Replied: 5/30/2012
    Law Office of Kristen Allard Shier
    Law Office of Kristen Allard Shier | Kristen Allard Shier
    Your student loans and your car payment have nothing to do with each other. As long as you keep making your car payments, you can keep your car. However, student loans cannot be discharged in bankruptcy, unless you can prove the student loans will cause you an extreme hardship. This is definitely something you need to speak to an experienced bankruptcy attorney about.
    Answer Applies to: Colorado
    Replied: 5/30/2012
    The Needleman Law Office | Scott Needleman
    Typically student loan companies will pursue your tax refund if possible. They could sue you and ultimately win, and haul you in to court for a Judgment Debtor Exam. This is when the student loan company can question you about all of your assets in court. I have never had it happen to anyone in 21 years. If your car has a lien to a bank, and there is no equity in your car, they do not stand in front of the bank in getting paid.
    Answer Applies to: Ohio
    Replied: 5/29/2012
    J.M. Cook, P.A. | J.M. Cook
    If you are farther enough behind that you are sued and a judgment is entered against you, it can be executed against personal property that has equity above the liens and exemptions. In the case of the car, that would mean its value would have to exceed the loan against it plus your state exemption of $3,500. So, it is unlikely that you would lose your car based on student loans or other debt.
    Answer Applies to: North Carolina
    Replied: 5/29/2012
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    You cannot discharge student loans.
    Answer Applies to: California
    Replied: 5/29/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If you are thinking of filing bankruptcy due to students loans, filing bankruptcy for that purpose will be of no value as you cannot discharge student loans in bankruptcy. If you still want to file, if you have equity in your car, you will need to have an exemption to cover that equity. Also, you will have to reaffirm the car loan before your case is discharged or the creditor can repossess the car if you do not reaffirm, even if you are current on the loan.
    Answer Applies to: California
    Replied: 5/29/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Most likely not but it depends on the amount of equity in the car.
    Answer Applies to: Michigan
    Replied: 5/29/2012
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    You will not likely be able to eliminate your student loan debt with a bankruptcy, so be sure to consult with an attorney. In a chapter 7 the trustee would be able to take your car or you would have to pay money if there is too much equity. You should consult an attorney on this issue.
    Answer Applies to: Florida
    Replied: 5/29/2012
    J. R. Matthews LLC | J. R. Matthews
    In either Chapter 7 or 13, as long as you make your payments you can keep your car. The status of your student loans has no effect on the status of your car loan.
    Answer Applies to: Oklahoma
    Replied: 5/29/2012
    Attorney At Law | Harry D. Roth
    No, you will not lose your car if you choose to continue to make payments. On the other hand, your student loans are non-dischargeable.? You can file bankruptcy, but your student loans survive.
    Answer Applies to: California
    Replied: 5/29/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    You will not lose your car unless you stop making the payments. You basically can't go bankrupt on student loans. Keep the payments up on the car.
    Answer Applies to: Florida
    Replied: 5/30/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Generally student loans are not dischargable and therefore bankruptcy will probably offer you little relief. There is a hardship exception on the student loans but it is difficult to qualify for. For you own good see a competent bankruptcy attorney before you do anything and possibly make a grave mistake.
    Answer Applies to: Michigan
    Replied: 5/29/2012
    The Smalley Law Firm, LLC | Cary Smalley
    You can generally keep your car in bankruptcy as long as you continue to make your monthly payments on it.
    Answer Applies to: Kansas
    Replied: 5/29/2012
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