Paying for Your Car in a Chapter 13

: Reese Baker & Associates

  Filed under: Chapter 13

carWhen you are entering into a bankruptcy naturally you have grave concerns as to what is going to happen to your assets. You are also concerned about how your creditors are going to deal with this. One of the most important assets that you may have is your car. You want to know if you will just be able to keep on paying for this.

Payment Obligations

You may have a few options when it comes to paying for your vehicle during your Chapter 13 Bankruptcy. You may be able to exclude it from your bankruptcy and just continue making payments on it as you have been. This is if you have purchased the vehicle within the last 2 ½ years and you have been keeping your payments up.

If payments are behind then you may be at risk of the vehicle being repossessed. In this case you want to be sure that it gets included in the bankruptcy. You may also have to consider the situation of a co-signer when it comes to the vehicle and whether to include it in your Houston bankruptcy.

Every state has their own bankruptcy laws. In regards to your vehicle you will have to comply with the state bankruptcy laws pertaining to it. You should also use the services of a bankruptcy attorney who will advise you as to what is best regarding your vehicle and other assets. Bankruptcy laws can be really difficult to decipher and this is for both the Chapter 7 and Chapter 13 bankruptcy offerings.