Can I keep my car in Chapter 13 Bankruptcy?

Yes, in most cases, you can keep your car in Chapter 13 Bankruptcy in New York. The goal of Chapter 13 Bankruptcy is to help you keep your property and to allow you to make payments on your debts. When you file for Chapter 13 Bankruptcy in New York, the court will create a repayment plan that outlines how much you must pay your creditors each month. As part of this plan, the amount you owe on your car loan will likely be included in your payments. Depending on your financial situation and the amount you owe on your car loan, the repayment plan might allow you to pay back the loan at a discounted rate. This means that you might be able to pay back a smaller amount than you originally owed or you could extend the loan for a longer period of time. In some cases, you might be able to keep your car even if you have a loan balance that exceeds the value of the car. This is called a “cramdown” and involves reducing the size of your car loan so that it is more manageable. This can help you make payments on the reduced amount more easily. Even if you are unable to cram down your car loan, you can still keep your car in Chapter 13 Bankruptcy. As long as you can make payments on the full amount of the loan, you can keep your car. Keep in mind, however, that if you fail to make your payments, the lender could repossess your car.

Related FAQs

Can I keep my car in Chapter 13 Bankruptcy?

Related FAQs

Related Blog Posts