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FAQ

If I file a Chapter 7 bankruptcy, do I still have to pay my auto loan and mortgage?

Posted by Stefen K. Shamberg | Jul 21, 2024

That depends upon your intentions.  An auto loan and mortgage are secured debts.  So if you would like to retain your motor vehicle and real property then you must continue satisfying your required payments.  Should you not want to preserve  your ownership, then you are not obligated to pay the lenders.  However, failure to do so will likely result in a repossession of the vehicle and foreclosure on the real property.  Nonetheless, if you successfully complete your Bankruptcy case, then the obligation due on those loans will be Discharged, and therefore those creditors will be unable to collect upon the remaining outstanding balances.

About the Author

Stefen K. Shamberg
Stefen K. Shamberg

Originally from the Cleveland area, Stefen was principally raised in Mansfield, Ohio.  Upon graduating from high school he attended Kent State University obtaining a Bachelor of Arts Degree, majoring in Political Science.  Interested in the legal profession from an early age, he subsequently earn...

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Shamberg & Associates is committed to answering your questions about Bankruptcy, Foreclosure Defense, Breach of Contract Defense, and Debt Settlement. So contact us today for an Initial Free Consultation at (216) 691-7800.

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