Question

Which of the following debts could possibly be forgiven under chapter 7 bankruptcy?

A. A car loan
B. Child support
C. A student loan
D. Alimony

Answer 1

A car loan. If you owe money on the car, the bankruptcy discharge will remove any and all unpaid balance on that debt.

Answer 2

The answer is car loan deficiency.

When a person has no money to make payments for the car loan, the car is taken away from him. Either he pays or repossess the car. So basically, he is already without a car and now the best he can do is, eliminate the debt which is left behind. So yes, it is true that a bankruptcy filing can get rid of a car loan deficiency.