Can I keep my car in Chapter 13 Bankruptcy?

Yes, you can usually keep your car in a Chapter 13 Bankruptcy. The law in Washington allows you to keep a car for basic transportation, even in Chapter 13 Bankruptcy. This means that, if you owe money on the car, you will need to make your payments to the lender under the terms of the Chapter 13 Bankruptcy. In Chapter 13 Bankruptcy, you will enter into a repayment plan with the bankruptcy court and make regular payments over a period of time, usually three to five years. The payments are usually made to a trustee who will distribute the payments to your creditors. You must include your car loan payments when you set up your repayment plan. In most cases, you can keep your car even if the car is worth less than what you owe on it. The lender must accept your repayment plan and agree to the amount you will be paying each month. If the car is worth more than what you owe on it, then you may be able to keep your car and still pay off the loan in full as part of your repayment plan. It is important to note that you may be able to keep your car in Chapter 13 Bankruptcy, but you may still have to surrender the car to the lender if you fail to make your payments. If this happens, the lender may be able to repossess your car. Therefore, it is important to be sure that you can commit to making your car payments for the duration of the repayment plan.

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