Can’t afford our car payment, can we file proposal and give up the car?
My husband and I would like to file a personal proposal as he is laid off and we just can’t manage our debt-load including our car payments. We have just under 4 years left on our car loan and really can’t afford the payments any longer. I know that you can keep your car if you make the usual payments, but what do we do about not keeping it?
Yes, you can include the car in a bankruptcy or a proposal.
Just don’t turn in the car until after you file and turn it over to the lender in accordance with your trustee’s advice if you would like to surrender the vehicle in the proposal or bankruptcy.