Can I keep my car in Chapter 13 Bankruptcy?
In California, you may be able to keep your car in Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is a form of reorganization bankruptcy in which individuals are able to keep their property, such as cars, and pay off their debts in installments over a specified period of time. If you have a secured loan on your car which is current, you may be able to keep your car under Chapter 13 Bankruptcy. In order to do so, you must continue to make payments on the loan in accordance with the repayment plan approved by the Court. If you cannot make these payments, the lender may repossess your car. If you have fallen behind on payments on your car loan, you may still be able to keep it under Chapter 13 Bankruptcy. You may be able to "cure" your delinquent payments by paying them over time under the plan approved by the Court. Keep in mind that if you have a co-signer on the car loan, you will also have to make payments to them under the plan. Finally, if you have an unsecured car loan, you may be able to keep the car by valuing it at less than the total amount owed and then paying the lender the difference over time through the plan. Overall, it is possible to keep your car in Chapter 13 Bankruptcy in California. You may need to make payments to keep it, cure past due payments, or lower the value of the car to keep it. It is important to speak to a qualified bankruptcy attorney to understand how the Chapter 13 Bankruptcy process works and how it may affect your car loan.
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