Expert: Terry Leeders - 9/2/2009

Question
Can you file a Motion to Avoid lien on a car in Chapter 7?  How?  When file before or after discharge?  Do my payments have to been current before filing?  Will I retain the car free from any car payments?

Answer
If the lender is holding the title, you cannot avoid the lien, as it attaches to the value of the car.
you can reaffirm the debt, continuing the same payment terms with the lender, or you can surrender the car and wipe out the debt.  Finally, you can buy the car for Fair market Value, called redemption.  The court will strip off any of the debt above the fair market value.  There are companies that can help finance the payoff for you, contact 722redemption.com to see if they can help.