Michigan Bankruptcy Auto FAQ: Your Guide to a Fresh Start

Keeping My Current Car (And the "Hidden Traps" You Should Know)

Q: Will I lose my car if I file Bankruptcy in Michigan?

A: Not necessarily; most Michigan residents can keep their primary vehicle as long as the equity is within legal exemption limits. But if you owe more than it’s worth - would you really want to keep paying?

The Reaffirmation Strategy: Rebuild or Restart?

While keeping a paid-off car feels safe, it is a "silent asset" that does not report to credit bureaus; many of our Southeast Michigan clients choose to upgrade to a reporting loan to jumpstart their credit score.:

• The Reality of Reaffirming: If you reaffirm an old loan, you stay legally responsible for the debt. If the car breaks down later, you're stuck with the bill. Plus, many banks have stopped reporting positive payments on reaffirmed loans to the credit bureaus.

• The "Fresh Start" Restart: Many people filing in Flint, Saginaw, or anywhere in Metro Detroit realize that "surrendering" that old debt-trap and starting fresh with a guaranteed-reporting loan from us actually puts them in a better financial position on Day 1.

• Guaranteed Credit Reporting: Unlike an old loan, our specialized bankruptcy loans are guaranteed to report to all three credit bureaus every single month. This is the most effective way to see your score jump after a BK filing.

Why pay for the past when you can drive into the future? Let our Flint-based team show you how a new loan can be the cornerstone of your credit recovery.

Q: Can I keep my car if I’m still making payments?

A: Yes, you can keep the vehicle by making payments per your current contract, but you may be missing out on the fastest way to rebuild your credit.

The Reality Check: When you file for bankruptcy in Michigan, an "Automatic Stay" immediately stops a lender from repossessing your car. However you must keep payments up-to-date to keep the car. Our clients in Southeast Michigan often find there’s a better way to handle an active car note:

• Reaffirmation Risk: Signing a “reaffirmation agreement” locks you into the old debt legally, even if the car breaks down later. If you keep your old car without a new agreement, many lenders stop reporting your on-time payments to the credit bureaus after you file. You're doing all the work of paying for a car in Genesee County, but getting zero credit score boost.

• The "Wait and See" Strategy: In a Chapter 7 filing, you can often keep the car and keep paying without signing a reaffirmation (this is called "retain and pay"). This keeps your options open if you decide you’d rather have a newer, more reliable vehicle later.

• The Smart Upgrade: Instead of struggling with an old, high-payment loan in Lapeer or Bay City, you can use the bankruptcy to "wipe the slate clean." 

Why choose a new loan over the old one? Our specialized Flint bankruptcy auto loans ensure every single payment you make is reported to all three credit bureaus, which is the fuel your credit score needs to hit that 700+ mark.

Q: What happens if my vehicle is already paid in full?

A: Generally, your bankruptcy allows you to keep one vehicle. In Michigan, nearly $5K in vehicle equity could be protected using 2026 state and/or federal bankruptcy exemptions. If your car is worth more, a wildcard exemption can often cover the rest.

While keeping a paid-off car feels safe, it does nothing to repair your credit score after filing. Why a new loan might be better than a paid-off car and why many of our Metro Detroit, Saginaw and Lapeer clients choose to upgrade:

The Credit Rebuild Secret: A paid-off car doesn't send monthly reports to the credit bureaus. To bounce back from bankruptcy, you need an active, reporting installment loan.

Fresh Credit History: Our team specializes in bankruptcy auto loans that report every single on-time payment to all three major credit bureaus. This is the fastest way to prove to future lenders that you are a reliable borrower again.

Reliability Over Risk: Instead of driving an older, paid-in-full car that might need expensive repairs down the road, we can help you transition into a newer, more reliable vehicle with a payment that fits your "Fresh Start" budget.

Our Flint-based experts are here to show you how a new vehicle loan isn't just a ride—it's a credit-building tool. We complete most of the finance paperwork over the phone and offer delivery options for qualified buyers throughout Flint, Saginaw, or anywhere in Metro Detroit.

Q: How much car equity can I have and still keep my vehicle?

A: 2026 Michigan bankruptcy law allows you to protect up to $4,725 in equity, while federal rules cover up to $5,025. If you’re married and filing a joint bankruptcy in Eastern Court District of Michigan, you can often double those amounts to protect two vehicles. 

Around Flint, most people don’t have an equity problem ?? unless they're driving that rare Lamborghini! Many of our clients, however, find the smarter move is surrendering a vehicle with too much equity or a high interest rate and starting fresh with our specialized bankruptcy auto loan optons. 

The "Hidden" Opportunity:

While keeping a paid-off car is an option, it doesn’t help you win the "credit game." A paid-off car is a "silent asset"—it doesn't report to the credit bureaus. 

Our specialized Flint bankruptcy auto loans report to all three bureaus every month, turning your daily commute to Lapeer or Saginaw into a credit-rebuilding machine that proves you're back on track faster than any old car ever could.

Q: What if my car is worth more than I owe?

A: The court could technically look at the vehicle as an asset, especially if your car's value minus your loan balance is higher than the bankruptcy exemption limits. Typically, that’s not an issue unless you have significant equity, usually anything over $4,725 to $5,025.

Avoid the "Equity Trap": When a vehicle is worth way more than you owe in Metro Detroit or Saginaw, you’re usually better off surrendering it and using your "Fresh Start" status to get our Flint bankruptcy auto loan. If you find yourself with too much equity in an older car, don't worry—you have options that actually put you in a better position.

Upgrade & Rebuild: Instead of risking a high-equity vehicle being tied up in court, many of our Genesee County clients choose to start fresh. We specialize in The "Flint Fresh Start" strategy:

loans that help you "trade up" to a reliable vehicle while ensuring your monthly payments are reported to the credit bureaus.

The Bottom Line: A car with $10,000 in equity might be a "win" on paper, but if it isn't helping you rebuild your credit score, it's holding you back. Our expert finance team can help you look at your car equity and show you how a new loan can turn your bankruptcy into a credit-building victory .

Q: What if I owe more than the car is worth (upside down)?

A: If you’re "underwater" on your loan, you're essentially paying a "debt tax" every month for a car that is losing value. Typically, the smartest move is to include that vehicle in your bankruptcy discharge along with your other bad debts.This is the most common scenario we see in Michigan.

The Tri-City Fresh Start Strategy:

Why keep struggling with an old, high-interest loan when you can use the law to walk away for free? Here is how our team helps Metro Detroiters and more turn "upside down" situations into a "right-side up" future:

Wipe the Slate Clean: By surrendering the vehicle in your Eastern District of Michigan bankruptcy, you discharge the entire balance—including that "negative equity" from previous trade-ins. You walk away owing zero dollars on that car.

Immediate Credit Rebuild: Instead of staying stuck in a loan that isn't helping you, you can transition into a Flint bankruptcy auto loan with us as soon as your case is filed.

The Power of Reporting: While an old, reaffirmed loan often provides little to no boost to your score, our specialized lenders report your new on-time payments to all three credit bureaus every single month.

Lower Principal, Better Value: In many cases, our clients find that even if a post-bankruptcy interest rate is higher, their total monthly payment is lower because they aren't financing thousands of dollars in old "ghost debt."

Q: What happens if I have more than one car?

A: The goal is to make payments toward a vehicle that’s going to help you rebuild your life and ditch any others that would be holding you back. When you have multiple vehicles, it’s not just a legal question—it’s a strategy question.

Generally, bankruptcy exemptions are designed to protect one primary vehicle per person. Whether you’re filing in Flint, Saginaw, or Detroit, your options are based on how your household is set up:

The Married Couple Advantage: If you and your spouse file a joint bankruptcy, you can "double" your exemptions. As of April 2026, you can protect up to $9,450 in combined equity (using Michigan state rules) or even more using Federal rules. 

The "Equity Math": Even if you are a single filer with two cars, you might be able to keep both if they have low equity. If one car is a "beater" with a low resale value, an experienced bankruptcy attorney can often use a wildcard exemption to protect it alongside your main car.

Best Strategy: The "Clean Slate" Move: Just because you can keep two cars doesn't always mean you should. Keeping two old loans or two aging vehicles can drain your "Fresh Start" budget.

Why consolidate? 

Instead of struggling to maintain and insure two older vehicles, many of our clients choose to surrender the high-interest or high-equity vehicle and move into a single, high-quality Flint bankruptcy auto loan with us.

One Payment, Maximum Impact: By focusing on one newer vehicle, you may be able to lower your insurance costs and ensure every dollar you spend is reporting to the credit bureaus to rebuild your score.

Reliability: We help you trade "two old headaches" for one reliable ride that can be under warranty and built for your new financial future.

MI Bankruptcy Options for Vehicle Surrender and Loan Discharge

Q: What happens to my car loan in Bankruptcy?

A: Once you file for bankruptcy in Michigan, all creditors must be legally included in your filing. 

You generally have two primary paths for your vehicle:

Reaffirmation Agreements: You can choose to sign a "reaffirmation agreement" to keep your original loan terms, provided the bank approves. However, for many Genesee County residents, this is usually not the best financial move.

Surrender & Discharge: Your car loan is included with your other debts when you choose not to sign a reaffirmation. The vehicle is surrendered, and the remaining balance is discharged. This gives your credit a fresh start so you can look at better options, like a bankruptcy auto loan from our team in Flint.

Q: Can bankruptcy stop my car from being repossessed?

A: Yes. Filing for bankruptcy in Eastern District of Michigan triggers an "Automatic Stay," which acts like a legal brick wall. It immediately stops any repossession efforts, as long as the repo man hasn't already hooked your car. 

Is it worth saving? If your repo vehicle was just picked up and hasn't been sold at a Genesee County auction yet, you may be able to get it back. But ask yourself: “Should I save that car?” If you were facing repossession, chances are that loan was "toxic"—high interest, high payments, and zero benefit to your future.

Ditch the "Debt Trap": Instead of fighting to keep a car that’s already caused you financial stress, many Detroit residents choose to surrender the vehicle. This wipes out the entire loan balance and any "deficiency" (what you still owe after they sell it).

The "Flint Fresh Start" Upgrade: Once you file, you are a prime candidate for a Flint bankruptcy auto loan with our team. We specialize in helping people go from a "Repo Risk" to a "Credit Rebuilder."

Reliability You Can Trust: Instead of paying to get an old car out of the impound lot, use that money for a down payment on a newer, more reliable vehicle from our inventory. We ensure every on-time payment is reported to all three credit bureaus, helping you bounce back faster than any old loan ever could.

Q: What happens if my car was repossessed before I filed?

A: If your car was picked up before you filed bankruptcy, you are in a high-stakes race against the clock. In Michigan, you generally have a very small window—often as little as 10 to 15 days—to retrieve the vehicle before it’s sold at a Genesee County auction.

Is it worth the rescue?

While a Chapter 13 filing can sometimes force a lender to return a repossessed car, you have to ask yourself if that’s actually the best move for your "Fresh Start."

The Cost of the Past: To get a repo'd car back, you often have to pay the full past-due balance, repossession fees, and storage costs immediately. That’s thousands of dollars spent on a car that already failed you once.

The Clean Break: Most of our Bay City and Lapeer clients find it's better to let that old, "repo-tainted" loan go. By surrendering the car in your bankruptcy, you wipe out the entire debt—including the "deficiency balance" (the money you'd still owe after the auction).

The "Fresh Start" Drive: Instead of dumping cash into an old loan, use those funds to get into a Flint bankruptcy auto loan with our team. We can often get you into a newer, more reliable vehicle as soon as your case is filed.

Reliability & Credit: We focus on getting you a car that actually fits your new budget and reports your on-time payments to all three bureaus. This is the fastest way to turn a "Repo" on your record into a "Rebuilt" credit score.

Stop chasing a car that’s already gone. Let our Flint-based experts help you drive into a better future today.

Q: Do I have to keep paying my car loan after bankruptcy?

A: That depends on whether you signed a Reaffirmation Agreement.

If you reaffirmed: You are legally on the hook. You must keep making vehicle payments exactly like before, and if you miss one, the bank can repossess the car and sue you for the remaining balance.

If you did NOT reaffirm: You aren't legally required to pay. However, if you want to keep that specific car, most lenders require you to keep making payments to avoid repossession.

The "Credit Trap" vs. The Flint Fresh Start:

Many Wayne County residents think that continuing to pay on an old, reaffirmed loan will fix their credit. This is a myth. Most lenders do not report positive payments on reaffirmed loans to the credit bureaus. You’re doing all the work, but your score isn't moving!

Stop Paying for the Past: Instead of staying stuck in an old loan that isn't helping your score, many of our Lapeer clients choose to surrender the vehicle. This wipes out the debt completely.

Start Paying for Your Future: By starting a new bankruptcy auto loan with our team in Flint, you get a reliable vehicle and a loan that is guaranteed to report to all three credit bureaus every month.

The Math: Why pay monthly for a loan that keeps your credit score "invisible" when you can pay for a vehicle that can actually build you a path to a 700+ score?

Q: What is a Reaffirmation Agreement? (And Why Flint Filers Should Avoid It)

A: What it means: It’s a promise to the bank that you will retain your current automobile contract or modify it. You’ll still be personally liable for the debt even after your other bills are wiped away. The reaffirmation agreement is a legal contract that "pulls" your car loan out of the bankruptcy protection.

Should I do it?

In almost every case across Southeast Michigan, the answer is no - it is not a good idea for your financial future to sign a reffirmation. Here is why:

The Credit Reporting Myth: Many lenders tell people that reaffirming is the only way to rebuild credit. This is false. Most major banks stop reporting positive payments on reaffirmed loans because of the "derogatory" bankruptcy tag. You’re taking all the risk for zero credit-score reward.

The Deficiency Trap: If you reaffirm and then the car breaks down or you lose your job, the bank can repossess the car and sue you for the remaining balance. You lose the "Fresh Start" you worked so hard for.

You’re Likely "Underwater": On most car loans, people filing Michigan bankruptcy already owe more than the car is actually worth. In these cases, always proceed with caution.

The Strategic Alternative:

Instead of reaffirming a bad deal, many of our clients choose to surrender the vehicle and use their bankruptcy status to get a guaranteed-reporting Flint bankruptcy auto loan with our team. Unlike an old reaffirmed loan, our specialized loans are guaranteed to report your payments to all three credit bureaus every month.

Fresh Start Win: We often get our clients in Detroit and Saginaw into a newer, more reliable vehicle where your payment actually goes toward building your 700+ credit score, rather than just paying off "ghost debt" from the past.

Q: Can I surrender my car in bankruptcy and walk away from the debt?

A: Yes, absolutely! Surrendering your car is the ultimate Michigan bankruptcy "power move" for getting out from under a bad deal. When you choose to surrender your vehicle, you aren't just giving back the keys—you are legally "breaking up" with a bad loan.

The "Walk Away" Advantage in Genesee County:

In a typical repo, the bank sells your car at auction and then sues you for the "deficiency balance" (typically thousands of dollars still owed). Bankruptcy, however, completely wipes out that deficiency balance.

The Clean Break: As of 2026, many older car loans in Michigan are "upside down" due to high interest and fast depreciation. By surrendering, you discharge the entire debt. You don't owe a dime for that car ever again—no matter how little the bank sells it for at auction.

Stop Paying for "Ghost Debt": Why keep paying for a car that might be worth $6,000 when maybe you owe more like $12,000? Surrendering allows you to stop pouring money into a losing investment.

The Upgrade Opportunity: Once you surrender that "debt trap," you open the door to a Flint bankruptcy auto loan with our team. We specialize in getting people into newer, more reliable vehicles as soon as they file.

Real Credit Growth: Unlike an old loan that often stops reporting to credit bureaus after bankruptcy, our loans are designed to report your on-time payments every month. This is the fastest way to turn your "surrender" into a soaring credit score.

Don't let a bad loan haunt you. Let our Flint experts show you how to surrender the past and drive into a better future today.

Q: Can I trade-in or sell my car BEFORE I file bankrupt?

A: Yes, you can—but you must be extremely careful with the "math" and the "timing." When you are filing in the Eastern District of Michigan, the Trustee will look at any vehicle transfer made within the last two years.

The Rules for a Flint "Fresh Start" Sale:

• Fair Market Value is Mandatory: If you sell your car to a friend or family member for $500 when it’s worth $5,000, the Trustee can "claw back" the vehicle or the cash. Always sell at a price a stranger would pay.

• The "Paper Trail": Keep every receipt. If you sell a car for $4,000, you must be able to show exactly where that money went. In Genesee County, using that cash for "necessities"—like groceries, rent, or even your bankruptcy attorney’s fees—is generally considered acceptable. But you’ll need records to show that.

• Trading In: If you trade in an "upside down" car (where you owe more than it's worth), it’s usually a non-issue because there is no equity for the court to take. This is often the best way to move into a Flint bankruptcy auto loan with our team before your filing date.

The "Insider" Risk: Avoid "preferential payments." If you sell your car and use the money to pay back a loan to a relative (an "insider") instead of your other creditors, the Trustee can sue that relative to get the money back.

Why trading in with us is the "Safe" Play: Instead of risking a private sale that might look suspicious to a judge, many of our clients find it safer to:

1. Trade in their vehicle at our dealership for a fair, documented value.

2. Apply that value toward a newer, more reliable vehicle.

3. Start a new loan that is designed to report to all three credit bureaus as soon as you file.

Don't risk your "Fresh Start" on a DIY car sale. Let our Flint bankruptcy auto loan experts help you handle the trade-in correctly so you can drive into your bankruptcy with confidence.

Getting You Back on the Road: Flint Bankruptcy Auto Loans

Q: I don’t live near your dealership, can you still help?

A: Yes— While we primarialy serve the entire Eastern District, if you are filing anywhere in Michigan we can help you navigate the specific local court requirements. We are the go-to bankruptcy auto loan experts for residents across Metro Detroit, Saginaw, Bay City, Lansing, and Lapeer, with our home base located in Flint. 

How we make it easy for out-of-town buyers:

• Digital Pre-Approval: You don’t need to drive to Flint just to see if you qualify. You can handle your application and document submission entirely online or over the phone from the comfort of your home in Detroit or Grand Rapids.

• Coordinated Legal Paperwork: We work directly with bankruptcy attorneys throughout Michigan. Whether your 341 Meeting of Creditors is in Flint or Detroit, we ensure the Buyer’s Order and Trustee paperwork are delivered exactly where they need to go.

• The "One-Trip" Guarantee: We value your time. Our goal is to handle the heavy lifting remotely so that when you do visit our dealership, you are simply signing your final papers and driving your new vehicle home. In some cases we offer delivery options.

• Local Trustee Expertise: Every court district has different "unwritten rules." We know what the Detroit and Flint Trustees look for in a vehicle contract, which prevents your loan from being rejected by the judge.

Distance shouldn't be a barrier to your "Fresh Start." Whether you’re coming from the 313, the 989, or the 517, we have the specialized inventory and legal expertise to get you back on the road.

Q: Can I get a car loan in Michigan during BK or after filing?

A: The short answer is YES! You can begin the process for an auto loan as early as "Day 1" of your Chapter 7 filing.

Whether you are filing in Flint, Saginaw, or Detroit, you don’t have to wait for a discharge to obtain a quality vehicle. There are programs specifically designed for Michigan residents to help them obtain a vehicle during or after the bankruptcy process. Chapter 13 is also possible, it just has different options and more steps. Call me and I can answer questions to your specific situation.

Q: How soon after Chapter 7 bankruptcy can I purchase a vehicle?

A: Very soon. In fact, you don't have to wait for your discharge or for the bankruptcy to "fall off" your credit report. In Genesee County, many of our clients qualify for a late-model vehicle loan immediately after filing.

The "Day After" Strategy:

The lending market in Michigan is highly optimized for bankruptcy filers. Here is why acting sooner is often better:

Chapter 7 Filers: You can typically apply for financing as soon as your case is filed and you have a case number. Many lenders actually prefer to lend to you right after you file in Saginaw Bay City or Lapeer, because your other debts are being wiped out, making you a lower risk.

Chapter 13 Filers: Since your plan lasts 3–5 years, the court understands that cars break down. You can purchase a vehicle during your active case; you just need a "Motion to Incur Debt" from the Trustee. Our team is expert at providing the exact Buyer’s Order Michigan Bankruptcy Trustees need to approve your new ride.

Jumpstart Your Score: Waiting years to buy a car actually slows down your recovery. By starting an auto loan almost immediately, you begin adding positive, on-time payment history to your report immediately. This is the "fuel" that drives your credit score back into the 700s.

Why wait for a discharge when you can start rebuilding today? Our Flint team specializes in "Open BK" financing—come see how we can get you in a late model vehicle right after filling.

Q: Do you offer car delivery for bankruptcy clients outside of Flint?

A: Yes! Specialized delivery options are available throughout Michigan’s entire Lower Peninsula so you can get a reliable vehicle without needing to find a ride to our Flint location. 

For clients in Saginaw or anywhere in Metro Detroit, our expert team tailors delivery options for those we secure financing for over the phone. Many bankruptcy auto programs often serve the broader region to ensure clients get the vehicle they need once the trustee or court gives permission, regardless of their specific neighborhood.

Q: What are the requirements for a Bankruptcy Auto Loan in Flint?

A: Approval for a bankruptcy auto loan typically boils down to three main factors: steady income, your current stage in the bankruptcy process, and working with a dealership that speaks "Trustee-language."

The Michigan Requirement Checklist:

Steady Income: Most lenders in the Tri-City area look for a gross monthly income of at least $1,800 to $2,500. W-2 wages are preferred, but we also work with self-employed residents and those with fixed incomes (SSI/Disability).

Case Status: Chapter 7: You generally only need your case number. We have programs that allow you to drive away the same day you file, even before your 341 Meeting of Creditors.

Chapter 13: This requires a "Motion to Incur Debt." Our team of experts can provide you with a specific Buyer's Order that outlines the year, make, model, and payment for your bankruptcy attorney to submit to the Bankruptcy Trustee for approval.

Down Payment: While we strive for $0 down, having $500 to $1,000 (or a trade-in) significantly opens up your options to lower the car loan interest rates available to you.

The "Expert" Difference:

Many Detroit dealerships will tell you to "come back after your discharge." That is a mistake. Waiting 3 to 5 years (in Chapter 13) or 4 months (in Chapter 7) to start rebuilding your credit is lost time. We specialize in the "Open BK" loan process, ensuring that every requirement—from the Trustee's letter of necessity to the court order—is handled professionally so you can start rebuilding your credit immediately.

Life After Filing: Rebuilding Your Post-Bankruptcy Credit

Q: Will filing bankruptcy affect my car insurance?

A: Generally, no. Michigan residents have a unique advantage so it’s best to talk to your insurance agent.

A 2020 law prevents auto insurers from using your actual credit score to set your rates. However, they do create an “insurance score” by looking at your payment history. By starting fresh with a new auto loan from our team and making every payment on time, you're not just rebuilding your credit—you're proving to insurance companies that you're a low-risk, responsible driver.

How a new or new-to-you car helps your insurance & credit

While the bankruptcy itself doesn't raise your rates, your overall credit health still matters for your long-term financial freedom in Genesee County. Here is how our team helps you bridge the gap:

The Credit Rebuild: Focus on your credit score. A Flint bankruptcy auto loan with our team is the fastest way to add positive, on-time payment history to your report.

Modern Safety Savings: If you are currently driving an older vehicle, your insurance might be higher due to a lack of modern safety features. Upgrading to a newer, more reliable vehicle from our inventory in Flint can often trigger safety discounts that offset other costs.

Pro-Tip: Even though Michigan insurers can't use your "FICO" score, they can look at your payment history. By getting into a manageable loan with us and making every payment on time, you prove you are a low-risk driver and a responsible borrower.

Don't let credit worries stop you from getting a safe vehicle. Let our Flint experts show you how to drive a better car while building a better score.

Q: Do the rules change about cars between chapter 7 and 13 in Michigan?

A: Yes, the rules are very different. Think of Chapter 7 as a "Clean Break" and Chapter 13 as a "Restructure."

Chapter 7 (The Sprint): This is straightforward. You typically have 30–45 days to decide whether to reaffirm (stay in your old loan), surrender (give it back and wipe the debt), or redeem (pay the car’s current value in a lump sum).

Chapter 13 (The Marathon): This is a 3-to-5-year repayment plan. In Flint, the court and the Trustee are much more involved. You might be able to "Cramdown" your loan—which means only paying back what the car is actually worth, rather than what you owe—but only if you've owned the car for at least 910 days (about 2.5 years).

Why your "Chapter" matters for a new car:

Regardless of which chapter you file, our team in Genesee County knows how to navigate the paperwork to get you behind the wheel:

In Chapter 7: You can often qualify for a Flint bankruptcy auto loan as soon as your case is filed. This is the fastest way to start rebuilding your credit score while your other debts are being wiped out.

In Chapter 13: If your current car dies or becomes too expensive to fix during your plan, you don't have to walk. You just need "Permission to Incur Debt" from the Trustee. We are experts at providing the specific Buyer’s Order and financing terms that Flint Trustees require to approve your new loan.

The Bottom Line: Chapter 13 filers often think they are "stuck" with their old car for 5 years. That is a myth. If your car isn't reliable, we can help you petition the court to trade it in for a newer, better vehicle that actually helps you complete your plan.

Q: Can I trade in my current car while in an active bankruptcy?

A: Yes, it is possible to trade or sell your present vehicle during a bankruptcy transaction, but it requires accurate reporting to your bankruptcy lawyer. 

We work directly with Michigan bankruptcy attorneys in the Tri-City to ensure the paperwork is handled correctly for a seamless transition into a newer, more reliable car during or after bankruptcy.