What would happen if the car payments become past due? 11 Answers as of July 16, 2015

I am in the middle of a chapter 13. I wanted to keep my car at first but now would like to surrender it. Is this possible?

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Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Contact your chapter 13 lawyer with all questions related to your ongoing chapter 13 plan!
Answer Applies to: Colorado
Replied: 7/16/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Talk to your lawyer about a post-confirmation modification. If you don't have a lawyer, call an experienced BK lawyer. Most lawyers charge their regular hourly rate to give this kind of advice (for example, $250 for a one hour meeting). But the lawyer can look at your bankruptcy court file from his or her office using PACER. Good luck!
Answer Applies to: Colorado
Replied: 7/16/2015
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
Discuss this with your attorney as to how it would impact your specific plan. It is possible to do.
Answer Applies to: California
Replied: 7/16/2015
Stephens Gourley & Bywater | David A. Stephens
It is possible, but you may have to amend your plan.
Answer Applies to: Nevada
Replied: 7/16/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It requires a plan modification which is accomplished by motion. So yes, it may be done.
Answer Applies to: California
Replied: 7/16/2015
    Ronald K. Nims LLC | Ronald K. Nims
    You would need to modify your plan. Not a problem is you have a good reason why you no longer want the car, the most common is it needs a major repair.
    Answer Applies to: Ohio
    Replied: 7/16/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Sure, but you will need to amend your budget to show that you are no longer making car payments. I would expect the trustee to ask for a larger plan payment since you now should have more money available to pay your creditors, If your car payments were made through the Plan, you will also need to submit a modified plan and request confirmation.
    Answer Applies to: Nevada
    Replied: 7/16/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Yes, you can do that, but it requires an amendment to your plan and an adjustment to your plan payment. If you don't already have legal counsel, you should find one to help you with the amendment procedures.
    Answer Applies to: Oregon
    Replied: 7/16/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes - but it may have other consequences depending on where you are in your plan.
    Answer Applies to: Michigan
    Replied: 7/16/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Discuss this with your lawyer. If you don't have one, you may now need one. That said, the answer will depend on he specific language of your Plan. If your Plan says the Trustee will make monthly payments on your car loan, or if you are somehow permitted to pay it directly, the attitude of many courts and Trustees is that your obligations are fixed by the terms of the Plan. Conceivably, if you could sell the car for enough to pay off that creditor in full, it might be permitted, but then you would have to either continue making the same monthly payment to the Trustee (who would pay out more to unsecured creditors), or rethink your Schedules I and J to see if your monthly payments could legitimately be reduced. Consult a lawyer well informed about Chapter 13. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 7/16/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You have to make a motion and amend your petition.
    Answer Applies to: New York
    Replied: 7/16/2015
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