Shakira asks: “What Happens to My Car During Bankruptcy?
There is a powerful tool available only in a Chapter 7 bankruptcy called Redemption, which allows you to keep your car by paying fair market value to the creditor, not the amount you actually owe.
In Shakira’s case, she owes Santander $16,816.84 on a 2010 Nissan Altima, but the vehicle is only worth a little over $3,000.
The Solution – Redemption.
I filed a Motion to Redeem with the Bankruptcy Court transforming Shakira’s $16,816.84 Santander car loan into $3,154.00.
Shakira erased over $13,662.84 on her car loan and also erased all of her credit cards and personal loans in her Chapter 7 bankruptcy case.
Be sure to ask your bankruptcy attorney if Redemption is an option in your case.
Knowledge is power.