To help readers understand whether title and car loans are included in bankruptcy filings, Bankrate turned to Lamar Hawkins for guidance for separate articles about what happens to secured loans and how people can keep their cars through bankruptcy.
Lamar shared that the bankruptcy court disfavors predatory lending, and title loans are commonly predatory. He explained that the court may rewrite the loan to a market rate based on its value and have the lender receive payments over time so the borrower can keep the vehicle.
Addressing car loans and bankruptcy in a separate article, Lamar outlined the actions needed for a debtor to keep the vehicle. While going through Chapter 7, the debtor must either stay current with the lender, perform a redemption to pay off the lender, or enact a reaffirmation to change the loan’s terms. However, lender consent is required.
Chair of the Arizona Board of Legal Specialization’s Bankruptcy Law Advisory Commission, Lamar is one of the leading voices in Arizona for bankruptcy law. His practice focuses on all phases of debt workout and bankruptcy services, including Chapter 11 and Subchapter V 11 reorganization, Chapter 7 liquidation, financial workout negotiation and creditors’ rights. Lamar has been recognized in the Southwest Super Lawyers guide since 2012, as well as Best Lawyers in America©.
Read Bankrate’s “Are Title Loans Included in Bankruptcy?” article here.
Read Bankrate’s “How to Protect Your Car Loan Through Bankruptcy” article here.
Read the MSN syndication here.