Which chapter should I file for bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Which chapter should I file for bankruptcy?

I am going to file bankruptcy. What is the best way to prevent my car from being repossessed? Which chapter assures this? Does the initial filing prevent this?

Answer By Amy B. Norberg

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If you are behind in your car payments, a Chapter 13 can make up for the payments you are behind through your monthly payments to the trustee. A Chapter 7 would temporarily stop the car repossession, but you would need to work with the car finance company to make up your payments.

Answer Applies to: Minnesota
Replied: 1/31/2012

Answer By J.M. Cook

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Filing under any chapter will stop the repossession. However, if you can't afford to pay for the car, bankruptcy will probably be only a temporary fix (although you may be able to modify the payments under specific circumstances). Like most questions in bankruptcy, the answer is to speak with a qualified atty who can advise you.

Answer Applies to: North Carolina
Replied: 1/31/2012

Answer By Kevin Heupel
Heupel Law
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Either chapter will stop a repossession. If you're late on the payments though, it's probably better to file Chapter 13 to repay the missed payments.

Answer Applies to: Colorado
Replied: 1/30/2012

Answer By Bill Zurinskas
Bankruptcy Law Center
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In Colorado, if you are current on your vehicle obligations and don't have equity in excess of the applicable exemptions, then you normally will not have your vehicle repossessed by the secured creditor by filing a chapter 7 bankruptcy. If you are behind in your vehicle obligations, you can file a chapter 13 bankruptcy to cure the default.

Answer Applies to: Colorado
Replied: 1/30/2012


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Both Chapter 7 and Chapter 13 will prevent a creditor from repossessing a car for at least a short period of time. If it is your intent to use the bankruptcy to force the creditor into a repayment plan so that you can catch up on your car payments, then you need a Chapter 13. You might want to consider carefully whether your car is worth the expense you will incur just to keep it. Chapter 13 attorneys' fees are generally in the neighborhood of $3000.00 and the trustee takes a percentage as well, which adds to the cost of the bankruptcy.

Answer Applies to: Wisconsin
Replied: 1/27/2012

Carballo Law Offices
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Can't tell what Chapter is the right one for you based on little information provided. Any bankruptcy case will stop repossession but only in Chapter 13 you can pay for the car over up to 5 years and maybe only what it is worth and at a lower interest rate. In Chapter 7 you will have at the most 3 months to bring the car loan current or work out some other deal with the bank. Chapter 13 costs a lot more in attorney's fees and plan payments must include a 10% approximately commission for the Trustee so not worth it generally to save money on a car unless you are far behind on the payments and no choice to keep car.

Answer Applies to: California
Replied: 1/27/2012

Answer By Phil Boardman
Philip R. Boardman, Attorney at Law
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Both types, ch. 7 and ch. 13 will stop a repossession. The protection goes into effect at the initial filing. However, a ch. 13 has a plan where you pay the car off through a plan payment over the course of 3-5 years. In a ch. 7, a repossession would merely be delayed for approximately 2 months. This might give you time to get the payment caught back up though.

Answer Applies to: Virginia
Replied: 1/27/2012

Law Office of Lynnmarie A. Johnson
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Which Chapter depends on a lot of things. Are you behind on your car payment and need time to catch up? Then Ch 13 is probably the way to go. If you are current, or can be current then probably Ch 7. But there mean more issues that have to go into the decision factor, but generally yes when you file it puts in place an automatic stay that has to be lifted in order to repossess your car. Good luck!

Answer Applies to: Michigan
Replied: 1/27/2012

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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Chapter 13 can stop a repossession if you can pay back the arrears. See a local attorney, because in a chapter 13, you may be able to cram down the value to market value as well if you owe more than what it is worth and you qualify.

Answer Applies to: New York
Replied: 1/27/2012


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If you are behind on your car payments, Chapter 13 allows you to pay the arrearages on the loan through your plan, together with the current payment on the vehicle. If you file Chapter 13 and the vehicle gets repossessed anyway, your attorney can file an adversary proceeding with the bankruptcy court to have the vehicle returned to you.

Answer Applies to: Georgia
Replied: 1/27/2012

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