How can late car payments affect a Chapter 7

Letter to “Ask Leon”

Hi: I have already been qualified to file a Chapter 7 and I am in the process of saving money to pay for the court fees. My question in regards to car payments. I understand that one must be current on car payments in order to file a Chapter 7. Honestly, I have been late with some of my payments and I am in the process of taking care of my car payments and late fees for January. Once I am current with my payments, will I still be able to file for the Chapter 7. Thank you. Crissy

Leon Says…

There is no legal requirement that you must be current on car payments to file bankruptcy. However, for you to keep the car, most lenders require that you are current and that you reaffirm the loan.

For more information about this topic, see my guide at:
http://www.debt-relief-bankruptcy.com/faq-browse11-11/bankruptcy-guide.asp