Can I keep my car during a Chapter 11 bankruptcy?

Yes, you can keep your car during a Chapter 11 bankruptcy in Michigan. The Michigan Bankruptcy Court will consider whether the car is necessary for your day-to-day life and if it is necessary, they will likely allow you to keep it. The court may also require that you continue to make payments on the car in order to keep it. If you owe money on the car, you must list it in your paperwork when filing for Chapter 11 bankruptcy and this debt must be included in your repayment plan. The court will work with you and your creditors to come up with a payment plan that you can afford that will allow you to keep the car. The plan could involve a reduction or change in the payment plan or even a reduction of the debt you owe on the car. If you are allowed to keep your car during Chapter 11 bankruptcy, you must also be able to insure it. It is important that you maintain sufficient insurance coverage while your bankruptcy case is pending. If you are allowed to keep your car and then fail to make payments or make the required insurance payments, the court could order the car to be repossessed.

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Can I keep my car during a Chapter 11 bankruptcy?

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