Lemon Law Didn’t Work for You in California? Bankruptcy Might Be the Solution
If you bought a defective car in California—commonly called a lemon—and the lemon law didn’t help, you’re not alone. Many people find themselves stuck with unreliable vehicles and auto loans they can’t afford, with no help from the manufacturer or dealership.
But here’s something you may not know: bankruptcy can help you walk away from your lemon vehicle and wipe out your other overwhelming debts.
When California Lemon Law Fails
California has one of the strongest lemon laws in the country, but that doesn’t mean it works for everyone. If your car has been in the shop repeatedly, but the dealer refuses to take it back or keeps giving you the runaround, you might feel trapped—especially if you're still making payments on a car you can't rely on.
If you're done trying to make the lemon law work, it's time to consider bankruptcy as a fresh start.
Bankruptcy Can Help You Discharge Your Lemon Loan (and More)
Bankruptcy allows you to surrender the car and eliminate the loan, even if the dealership or manufacturer never honored your lemon law claim. And the benefits don’t stop there.
By filing for bankruptcy in California, you may also be able to eliminate:
Credit card debt
Personal loans
Medical bills
Apartment lease balances or broken leases
This makes bankruptcy a powerful tool—not just for your lemon, but for your entire financial reset.
Can I Surrender My Lemon Before or After Filing?
Yes. You can surrender your lemon vehicle either before or after your bankruptcy case is filed.
But here’s the key detail you must know:
🚨 You must keep the vehicle insured until it is no longer in your possession.
Even if you’ve stopped driving it, until you return the car to the lender or dealership, you are still legally responsible for insuring it. This protects you from liability in case of theft, damage, or accidents while the vehicle is in your name.
What Type of Bankruptcy Is Best for This Situation?
In most lemon vehicle situations, Chapter 7 bankruptcy is the fastest and most effective option. It allows you to surrender the car and discharge the debt, often within just a few months.
If you don’t qualify for Chapter 7 due to income or asset limits, Chapter 13 bankruptcy can still help you reorganize your debt, surrender the car, and pay back only a portion of what you owe—if anything at all.
We Can Help You Move On from the Lemon
If you’re tired of dealing with a car that doesn’t work and a loan that’s dragging you down, we can help. At Bankruptcy Near Me, we work with clients across California to:
Surrender lemon vehicles
Discharge car loans, credit cards, and medical debt
Eliminate apartment lease obligations
Get a clean financial slate