Q: Can I file for bankruptcy with a title loan in Florida?
I am currently behind on my title loan payments and have significant credit card debt. I'm considering filing for bankruptcy but I'm not sure which type would be suitable. Can I still file for bankruptcy if I have a title loan, and what type should I be considering?
A: Yes. You can.
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A:
Yes, you can file for bankruptcy in Florida even if you have a title loan. Filing bankruptcy typically includes all debts, including title loans, credit cards, and other unsecured obligations. However, because a title loan is secured by your vehicle, the lender has the right to repossess your car if you fall behind on payments, even after filing for bankruptcy.
If you want to keep your vehicle, Chapter 13 bankruptcy might be the best option. Chapter 13 allows you to set up a repayment plan over three to five years, helping you catch up on overdue payments and potentially reducing your monthly debt obligations. In contrast, Chapter 7 bankruptcy would likely lead to surrendering your vehicle unless you can immediately bring the loan current or redeem the vehicle by paying its current market value.
It's important to consider your income, assets, and long-term financial goals when deciding between Chapter 7 and Chapter 13. Consulting with an experienced bankruptcy attorney can help determine which path best suits your situation.
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