What happens to my car loan in Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy Law in Virginia, you may be able to keep your car loan by reorganizing the debt. This means that the car loan is included in the Chapter 13 repayment plan, and you will be able to keep the car if you make the payments in accordance with the repayment plan. The repayment plan must include all of your unsecured debt, such as credit cards, and must be approved by the bankruptcy court. Under Chapter 13 Bankruptcy Law, you may be able to reduce the balance of the loan, reduce your interest rate, extend the term of the car loan, and/or lower your monthly payments. This can help you keep your car and make sure that your payments are manageable. In some cases, the court may even order that your car loan be completely discharged at the end of the repayment plan. In order to make sure that the car loan is included in the repayment plan, you must submit the application for Chapter 13 bankruptcy and any required documentation. After your application is approved, the court will require you to make regular payments according to the repayment plan, and will also require you to keep up the payments on your car loan. Failing to make your payments on time could result in the court revoking your right to have the car loan included in the repayment plan.

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What happens to my car loan in Chapter 13 Bankruptcy?

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