Can I keep my car if we file chapter 13? 8 Answers as of June 11, 2013

Me and my boyfriend are co-owners of my car. He is going to file Chapter 13 and wants to put my car on there. If he does do that and we split up, can I keep my car if he and his attorney agree to surrender the car to me in court?

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Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Putting the car through the Chapter 13 only serves to coordinate his obligation to pay on the debt. If you two split, and you're both on the title to the vehicle, you have a number of different arrangements you can make where you agree, or a court decides for you, to whom the car is given and how it is to be paid off.
Answer Applies to: Indiana
Replied: 4/8/2011
California's Largest Family of Attorneys
California's Largest Family of Attorneys | Doan Law Firm
If your boyfriend is filing for Chapter 13 bankruptcy and you are co-owners of the vehicle, you can keep the car if you stay up to date on all payments AND cover your boyfriend's half. Make sure you work something out with your boyfriend, so he transfers complete ownership of the vehicle to you.
Answer Applies to: California
Replied: 4/8/2011
Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
Yes.
Answer Applies to: Virginia
Replied: 6/11/2013
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You can always reaffirm the agreement to pay for you car outside of BK, if you are worried about losing it.
Answer Applies to: Washington
Replied: 4/7/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You can keep the car as long as you pay for it. His Chapter 13 case can not affect your rights in the vehicle.
Answer Applies to: California
Replied: 4/8/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    He would have to get the permission of the Chapter 13 trustee at the time he transfers his interest in the car to you, if the car is owned outright. If it is financed then he is also going to have to get the permission of the lender, which depends on the lender being able to finance the car for you alone.
    Answer Applies to: California
    Replied: 4/7/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Is there money owed on the car? If so, it doesn't matter who is in possession of the vehicle. As long as the payments are made you either of you can drive the car.
    Answer Applies to: California
    Replied: 4/8/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    If you are both co-debtors under the purchase agreement, when your boyfriend files for bankruptcy protection under any chapter, he can simply surrender the vehicle, which will wipe out the debt for the vehicle as to him. You, however, will remain liable under the purchase/loan agreement and may keep your car so long as you keep making the payments.

    Now, if he pays for only the market value of the car under the Chapter 13 plan, the co-debtor stay should protect you while he performs under the Chapter 13 plan, but neither your nor him will get title to the car until the plan is completed. If you split up before the plan is completed and he modifies his plan to surrender the vehicle (which is something any good attorney would advise him to do because the attorney's obligations run to the specific client) and stop making the reduced payments, you will still be liable for a large amount of arrears and the lender may repossess the vehicle if you don't get current or make arrangements with the lender unless, of course, you file bankruptcy yourself at that point and cram down the vehicle to market value in your own Chapter 13 case.
    Answer Applies to: California
    Replied: 4/8/2011
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