QUESTION
If I file chapter 13 will I lose my car or am I allowed to include auto?
Asked on Oct 23rd, 2012 on Bankruptcy - New Jersey
More details to this question:
I am over my head in debt. I owe more than I have coming in. I would like to file a chapter 13 but I can't afford to lose my car. Does chapter 13 allow you to include the car in the payments for bankruptcy 13?
13 ANSWERS
Usually you can keep your car in a Chapter 13 bankruptcy. An exception would be if you have more equity in your car than you can exempt. If you are still making payments then the car payments needs to be included in your chapter 13 payment plan and you must be able to fund the plan. Contact an attorney to decide what is the best option for you.
Answered on Oct 31st, 2012 at 12:42 AM
Bankruptcy Attorney serving Myrtle Beach, SC
at
Law Office of Margaret L. Evans, PC
Update Your Profile
Yes, absolutely !! that is one of the main purposes of a 13, to keep otherwise nonexempt assets. However, you may qualify for a Chapter 7, too, depending on the means test you can only successfully file a Chapter 13 if you have the requisite disposable monthly income to support a conformable plan.
Answered on Oct 29th, 2012 at 7:18 PM
Bankruptcy Attorney serving Overland Park, KS
at
The Smalley Law Firm, LLC
Update Your Profile
Yes, you can keep your car and include the payments in your plan.
Answered on Oct 26th, 2012 at 10:58 PM
Litigation Attorney serving San Antonio, TX
at
Graves Law Firm
Update Your Profile
Yes, you can keep your car in a Chapter 13. If you're behind on the payments you can include the arrearage in your trustee payment as well as the regular payment. See a bankruptcy lawyer.
Answered on Oct 25th, 2012 at 6:36 PM
Appellate Practice Attorney serving Cheyenne, WY
at
Lynn Boak Attorney at Law
Update Your Profile
You are allowed to keep a vehicle whose value does not exceed an amount specified by state or federal bankruptcy law. Generally, an older car will not be a problem but a new, expensive car that is mostly paid for may be.
Answered on Oct 25th, 2012 at 6:36 PM
Daniel James Wilson
First of all, why file Ch. 13 rather than Ch. 7? There are advantages to 13 in some circumstances. In addition, if you filed a Ch 7 that was discharged less than 8 years ago you are not eligible for a Ch 7. Or if you make too much money you have to file Ch 13, but you should discuss your situation with a lawyer to determine which chapter is best for your situation. To answer your question, you can probably keep your car, in a Ch 7 or a Ch 13. Colorado allows you to keep $5000 worth of car. That means equity, so if you have a car loan you probably have little or no equity. Finally, if you do file Ch 13 there is no need to pay car loan through the plan. See a lawyer.
Answered on Oct 25th, 2012 at 6:35 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Probably not, but you really need to talk to competent chapter 13 counsel. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Oct 25th, 2012 at 6:35 PM
Generally, if you want to keep your car you can do so in bankruptcy, either chapter 7 or 13.
Answered on Oct 24th, 2012 at 10:32 PM
Bankruptcy Attorney serving Alpena, MI
at
Carl C. Silver Attorney at Law
Update Your Profile
You would choose whether or not you keep the car. If payments are behind you would want to make payments on the auto through your chapter 13 trustee.
Answered on Oct 24th, 2012 at 10:31 PM
In Chapter 13, the only way you lose property that is financed is if you fail to make arrangements to pay for it. In some instances, you can make your car payments more affordable by paying off the car through the Bankruptcy Plan, but I usually advise against doing this because if the Plan fails (and most plans do eventually fail), you will lose your car.
Answered on Oct 24th, 2012 at 10:31 PM
Bankruptcy Attorney serving Hampton, VA
at
Haven Law Group, P.C.
Update Your Profile
No, you will not lose your car. In fact the car normally is paid for through the plan.
Answered on Oct 24th, 2012 at 10:30 PM
Criminal Defense Attorney serving Deltona, FL
at
R. Jason de Groot, P.A.
Update Your Profile
Consult with a bankruptcy attorney in your area before you decide which chapter to file.
Answered on Oct 24th, 2012 at 1:28 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Yes, Chapter 13 allows you to keep your car and make payments, but you have to remain current on your payments. If you have owned the car for several years,you may be able to cram down the price owed to the value of the vehicle.
Answered on Oct 24th, 2012 at 1:27 PM