Can I keep my car after filing Chapter 13?

It is important to remember that a Chapter 13 bankruptcy is a reorganization bankruptcy which means you pay virtually all you owe over a three to five year period. In so doing, you can keep valuable property –such as your car and home –rather than losing them. To file a Chapter 13 bankruptcy you must have money coming in in the form of a regular income and have some left over income for your payment plan.

Typically, the payments you agree to make are about the same as what you were paying on your own prior to filing for bankruptcy, plus some catch-up payments. This is predicated on the fact that you can make the payments based on your income.

Chapter 13 may be for you if you own your home and are behind on debt payments, but if you had more time, you could catch up over time.

Chapter 13 can help prevent a home foreclosure, make up mortgage and/or car payments, deal with back taxes, halt interest accruing on a tax debt and more. Your Melaragno, Placidi & Parini bankruptcy attorney can walk you through the whole process and provide you with enough information to make an informed decision about filing a Chapter 13 bankruptcy.

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