Will we be able to keep our vehicle in a chapter 13 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Will we be able to keep our vehicle in a chapter 13 bankruptcy?

We have a 2010 car we bought with a 401k loan but for titling purposes we own it outright. It is our only vehicle. We also have a 2008 travel trailer we are making payments on, but we would like to keep. Will it be possible to keep these vehicles with a Chapter 13 bankruptcy?

Law Offices of Christopher L. Hoglin, P.C.
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In California As far as the 2010 car - If you own it outright, Federal Law allows you to exempt up to $3525.00 for one vehicle. In addition to this amount, there is a wild card exemption totaling $23,250.00. If the value of the vehicle falls below this amount then or shortly over, the Bankruptcy Court will allow you to keep the vehicle. If the vehicle is secured by the 401k loan, then the Court will let you keep the vehicle as long as you can afford to make the payment on the 401k loan. As far as the travel trailer - The purpose of a Chapter 13 Bk is to allow you to catch up on payments for which you may be behind and put you on a re-payment plan for your debt. The BK Court will only allow you to keep items that are necessary to life (i.e. cars, homes, etc. A travel trailer is considered an extra luxury item that is not necessary for survival. With that said, the BK Court is likely to ask you to surrender this item and use the money allocated to that monthly payment to increase your Chapter 13 Plan Payment which is distributed to all creditors.

Answer Applies to: California
Replied: 10/3/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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Chapter 13 bankruptcy is not a liquidation proceeding. You can keep your property but it dictates in part how much you have to pay back, at a minimum, to creditors.

Answer Applies to: Indiana
Replied: 9/29/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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You can keep property as long as the equity value does not exceed the exemption limits. In a chapter 13 you can keep property that exceeds these limits but you would pay back the difference through your plan.

Answer Applies to: California
Replied: 9/29/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Yes, it quite possible. Without knowing what else you own or the value of the vehicle it could affect the amount of your payment.

Answer Applies to: California
Replied: 9/29/2011

Answer By Paul Stuber
Paul Stuber, Attorney at Law
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Yes, you can work out a Chapter 13 plan to keep the car and trailer.

Answer Applies to: Colorado
Replied: 9/29/2011

Answer By Spencer Hale
Jackson White, PC
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Yes it is possible.

Answer Applies to: Arizona
Replied: 9/29/2011

Answer By Daniel Moulton
Law Offices of Daniel Moulton
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A Chapter 13 is a debt consolidation and you keep most if not all of your property. A chapter 7 is a discharge of your debts and you get to keep property that is exempt or has no liquidation value. I would try to claim that the car is being paid for with the 401k loan and claim that it has no value, but it is not certain it would work.

Answer Applies to: Illinois
Replied: 9/29/2011

Answer By Natalia Diaz
Caruso & Diaz L.L.C.
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Yes you would be able to keep the vehicles as long as you can afford the monthly payments.

Answer Applies to: New Jersey
Replied: 9/29/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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In a chapter 13, you can generally keep all of your assets,, you would have to however, pay an amount to creditors equal to at least your "unexempt asset amount". For example, if your car is worth $20k and you and your spouse have an $8,000 exemption, then you would have to have a payment plan for at least $12,000. However, the dynamics of a Chapter 13, you are best speaking with a local attorney to know what your projected payment plan would be, which will include all other factors.

Answer Applies to: New York
Replied: 9/29/2011

Robert Peters, P.A.
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You can keep you car in a chapter 13. You should be able to keep the camper also unless it is deemed to be a luxury item by the court.

Answer Applies to: Florida
Replied: 9/29/2011

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