Does anyone know if the bank lowers your payment with Chapter 13 if you are stuck with that vehicle for the 3 or 4 yr. period until its Discharged? Can you sell your car or trade it during that period?
Well they take what the car is worth versus what you owe. In my case I owed more than my minivan was worth. Then they include your car into your chapter 13 bankruptcy so that you are just making one payment. In my case my bankruptcy payment was MUCH less than my car payment and our liabilites were over 240,000 due to medical bills. As far as being able to sell the car....you can trade the car in for another one but it has to be approved by the trustee handling your BK case and you must show a reason why you need another car....like the engine is going out etc and then you have to tell them how much you want to spend on another car and then they will decide to approve you to buy another one. Without a release from your trustee the car dealership wont approve you. Hope this helps. Linda (discharged from a 5 yr CH 13 - 1 1/2 yrs early (yeah!!!)
Yeap....I owed somethinglike 11,000 but the van was only worth 6700 so that is what I payed in my BK. I also had a friend who bought a new car from Ford and they took her for a ride on her loan....when she filed bk they only made her pay what car was worth in BK and Ford tried to stop the deal because the car was so new but the judge told them that is what they got for taking advantage of her.