Surrendering Your Car and Bankruptcy: What Should You Do?

November 1, 2021 | By Steffens Law Office
Surrendering Your Car and Bankruptcy: What Should You Do?

Simple answer? Surrender your car or vehicle to the creditor. We know that sounds scary, but it’s not as awful as you might think. Our Nebraska bankruptcy lawyer explains why below.

Why You Should Surrender Your Car to the Creditor

  1. When you surrender your vehicle to your lender during bankruptcy, you’re automatically off the hook for the rest of the debt. Your creditor will sell the vehicle, but you’ll no longer have to make any payments.
  2. By surrendering your vehicle, and releasing yourself from expensive car payments, you are better equipped to set money aside for a better vehicle that is less expensive. Less expensive doesn’t mean cheap, and you can even find nice, inexpensive vehicles that don’t need big repairs. By allowing yourself some time to set money aside, you’re preparing yourself for a better future with less financial burden.

surrendering your car and bankruptcy nebraskaWhat Should You Do Next

Okay, so you’ve decided it might be a good idea to surrender your vehicle. Take a few deep breaths—understand this situation won’t be forever and you’ll be on your feet again (well, on your wheels again). Before you give up your vehicle, we recommend taking the time to discuss with your family what you can do in the meantime to commute effectively around town. Plot bus routes, set up carpools, borrow a car, and bike or walk if possible.

Once you’ve figured out how you’ll easily transition to life without your vehicle for a few months, you’re in the position to surrender it.

How to Surrender Your Vehicle

Once you have decided to file Bankruptcy and surrender your car, you can stop making payments! Make sure to clean out your vehicle of any personal items. You can choose to drop off your vehicle at one of the lender’s locations, or you can wait for a representative to pick it up after you’ve filed bankruptcy.

At Steffens Law, our Nebraska bankruptcy lawyer understands that surrendering your car is NEVER an easy option. So many of us get attached to our cars—plus, they’re often essential for traveling to work, doctor’s appointments, picking up the kids from school, and traveling to visit family and friends.

Still, we know that surrendering your vehicle, no matter how hard it is, is an easier option than swimming in debt you can’t pay for years. Bankruptcy is never easy, but we know you’ll get through it and wind up on top, better than before!

[Related: How to Keep Your Car When Filing Bankruptcy]

Contact Our Nebraska Bankruptcy Lawyer With Any Questions

Still aren't sure about surrenduring your carr or how to properly file for bankruptcy in Nebraska? Please contact us online or give us a call at 308-872-8327 to discuss your options with our experienced Nebraska bankruptcy lawyer.