Generally, you keep your car (and other assets) in a Chapter 13 case. Depending on the amount of equity in your car, you may have to build some additional funds into your repayment plan to “pay for” the non-exempt equity.

If you have a loan on the car, you may even be able to lower the amount you pay. This will depend on how long you’ve had the vehicle, how much the car is worth, and how much you owe. Your bankruptcy attorney can explain how this works in greater detail.

You may also choose to surrender your car in your Chapter 13 case. If you choose to give up your car, the lender will sell it and apply the funds received to the amount you owe. If it doesn’t cover the full balance plus costs of sale, the remaining balance will go into your bankruptcy plan as unsecured debt. Unsecured debt is treated differently than secured debt and may be partly dischargeable after you’ve made all plan payments.

The automatic stay in either Chapter 7 or Chapter 13 bankruptcy can stop foreclosure temporarily. For those looking for a longer-term solution, Chapter 13 bankruptcy may be the answer.

Homeowners who can make their regular monthly mortgage payments and afford to make payments toward the past-due amount may be able to build the past-due balance into a Chapter 13 repayment plan. That means paying off the delinquent amount over three to five years. And, as long as the repayment plan is in good standing, the automatic stay will prevent the lender from taking any further action.

In some cases, it may be possible to purchase a home while still in a Chapter 13 bankruptcy plan. How soon a bankruptcy filer can finance a house depends on a variety of factors, mostly having to do with how well their finances are managed after filing.

When we represent you in a bankruptcy case, our goal is to help you build a more stable financial future. So, we don’t just represent you in the bankruptcy case. We also advise you on how to begin rebuilding as soon as your case is filed.

Yes. The automatic stay entered in most Chapter 13 cases stops lawsuits that are already in progress and prevents creditors and debt collectors from filing new lawsuits. If the other party attempts to move the case forward, you can provide the court with a copy of your automatic stay order and that will freeze the proceedings. 

Probably not. There is one required hearing, called a “meeting of creditors.” However, this isn’t really a court proceeding. The meeting is run by the bankruptcy trustee, not a judge. And, it often happens in an office or conference room rather than a courtroom. It’s usually short, and involves the trustee asking you some standard questions about your finances and the documents you filed.

You may have to go to court in special circumstances, such as if a creditor objects to your plan. But, that type of issue is unusual in consumer cases.