Can we put a car loan on our bankruptcy and still keep our vehicles? 9 Answers as of February 10, 2011

We are going to file Chapter 13 and we have 2 cars that are collateral for a loan we received. Can we put the loan on the bankruptcy (trustee pay it with everything else) and still keep the vehicles. Both vehicles are older 1998 and a 2000 and resale is around $3000.

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Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Yes you can
Answer Applies to: Alabama
Replied: 2/10/2011
William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Yes, you can.
Answer Applies to: Tennessee
Replied: 2/10/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If I'm understanding your question correctly you are asking if you can pay off your vehicle loans through your Chapter 13 plan. The answer is yes. You will have to pay either the total balance owed on each vehicle, or the vehicle's private party blue book value (whichever is less) over the course of your plan, which is a maximum of 60 months.
Answer Applies to: California
Replied: 2/9/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
I would say yes and you can probably discharge any loan amount over the value of the vehicles. That is called a "cram down". You pay the value of the vehicles only and not the loan balance assuming you either bought the vehicles over 30 months ago or the loans on the vehicles are refinancing of the original loans used to purchase the vehicles. If you are able to do a cram down then you must put the vehicles in the plan and the loan payments are to be included in the plan payment amount. If you are not able to cram down the vehicles, then it depends on where you are filing the case as to whether you need to include the vehicle loan payments in the plan payment or pay those loans directly to the creditor. In some areas the trustee requires that all vehicle loan payments be included in the plan payment and in other areas the trustee allows direct payment of vehicle loans when the vehicle is not going to be crammed down. Direct loan payment is better if you cannot cram down the loans because plan payments must include a percentage for the Chapter 13 trustee's commission which is generally 8 to 10%. You also have the option to surrender the vehicles and discharge the loan balances.
Answer Applies to: California
Replied: 2/9/2011
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Yes, you can pay those through the plan.
Answer Applies to: California
Replied: 2/9/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    As I have said before, you must list All of your assets and All of your debts in bankruptcy. You cannot pick and choose which debts to put in your bankruptcy. That said, yes you can still keep your case and would state your intentions in your bankruptcy papers.
    Answer Applies to: California
    Replied: 2/9/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    Based on the information you have provided, it sounds like you would be able to keep the cars as long as your plan is confirmed and you are able to make the plan payments.
    Answer Applies to: New Hampshire
    Replied: 2/9/2011
    Uriarte & Wood, Attorneys at Law
    Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
    you can keep the cars, but will most likely be required to reaffirm the contracts with the lenders. Talk to your Chapter 13 lawyer, he should be handling this for you. If you do not have a lawyer, I strongly suggest you retain one to ensure you follow the correct procedures.
    Answer Applies to: California
    Replied: 2/9/2011
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