What happens if you file chapter 13 bankruptcy but surrender your vehicle to the creditor? 15 Answers as of June 27, 2013

I am refiling a chapter 13 case and this time I would like to surrender my vehicle so that I am not paying double for the car. Is that an option?

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Richard L. Hirsh, P.C. | Richard L. Hirsh
If you surrender your vehicle the lender will sell it and any deficiency would be an unsecured debt in your bankruptcy case.
Answer Applies to: Illinois
Replied: 6/27/2013
Portland Bankruptcy Law Group
Portland Bankruptcy Law Group | Christopher J. Kane
Yes, you can choose to surrender the vehicle and discharge the loan in both Chapter 7 and Chapter 13. If you get your bankruptcy discharge you will not be liable for the deficiency balance on the loan after the lender takes the car and sells it.
Answer Applies to: Oregon
Replied: 6/26/2013
A Fresh Start
A Fresh Start | Dorothy G Bunce
Yes, although the courts in this jurisdiction have said it is not an option to surrender a vehicle in full satisfaction of the debt, if you surrender, the lender will only be able to file a claim for the deficiency on the vehicle.
Answer Applies to: Nevada
Replied: 6/26/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes. There should be place in the plan to provide for that.
Answer Applies to: California
Replied: 6/25/2013
Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
I do not understand why you say "pay double" for your vehicle.
Answer Applies to: Arizona
Replied: 6/25/2013
    DeMars, Gordon, Olson, Zalewski & Wynner
    DeMars, Gordon, Olson, Zalewski & Wynner | Matt Jenkins
    Yes. I cannot envision a scenario in which this would be a problem.
    Answer Applies to: Nebraska
    Replied: 6/25/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Yes it's an option, but I'm not sure i understand why you would be paying double to keep the car. If there is equity in the vehicle you should sell rather than surrender. If there is no equity then you would just pay off the loan. What you REALLY should do is consult with and retain an experienced chapter 13 to assist and guide you through the process. Chapter 13 cases are quite complicated and the success rate for those without representation is very, very low.
    Answer Applies to: Colorado
    Replied: 6/25/2013
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    Yes. That is typically an option available to you unless your particular jurisdiction has special rules regarding refiles.
    Answer Applies to: Arkansas
    Replied: 6/25/2013
    Danville Law Group | Scott Jordan
    What do you mean "paying double" for the vehicle? You only need to make the agreement monthly payments once. Yes, in Chapter 13 you can surrender the vehicle. Do you have another vehicle? Do you need one? If you need to purchase a new vehicle, you will need to obtain the Judge's permission.
    Answer Applies to: California
    Replied: 6/25/2013
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