Chapter 13 and Your Vehicle

If you are in danger of losing your car it is possible to prevent this loss by applying for Chapter 13 bankruptcy. In most cases of Chapter 13 bankruptcy you are able to keep your property, but you must agree to pay off your debts over a period of three to five years.

When you file for bankruptcy you must present a repayment plan that shows how you plan to use your current income to pay off your debts. In the case of your vehicle, you must show how you can pay your arrearage, or the amount that you are behind in your payments. However, it is important that you stay on top of your current payments as well as any back payments through the repayment plan. If the court finds that you are falling behind in these payments as well your bankruptcy filing will be taken away from you.

If you are successful in obtaining Chapter 13 bankruptcy then you get an automatic stay where creditors are not allowed to call you anymore.

Contact our legal team to obtain representation from a Chicago bankruptcy attorney during your Chapter 13 filing.