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I want to give my car back after filing a chapter 13

Mishawaka, IN |

I purchased this vehicle after I started making my chapter 13 payments. with the trustee approval letter. If i give this car back, will I still be protected under bankruptcy? And will the trustee approve another car loan?

Attorney Answers 3

Posted

If you purchased this vehicle after you filed your bankruptcy then it is a post petition debt and your liability for the debt will be unaffected by your bankruptcy, which is a long way of answering your question, no you will not be protected and if you give it back, they will be able to sue you if they cannot sell the car for what you owe. You could dismiss your current case and refile but there are significant risks to that. if you have an attorney, you really need to talk to him/her. If you don't have one, you need one.

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2 comments

Derek R. Caldwell

Derek R. Caldwell

Posted

Mr. Crozier is correct, you can convert to a ch7 and include the vehicle debt. Otherwise I stand by my earlier answer.

Derek R. Caldwell

Derek R. Caldwell

Posted

Sorry, that is Mr. Whitaker is correct.

Posted

Attorney Caldwell answered your question well.

Since this is a post-petition debt, you REALLY need to speak to a competent, local bankruptcy attorney before you make a move!

Good luck.

If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.

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Posted

If you qualify for, and convert to, Chapter 7, the auto loan can be included among your dischargeable debts. But ... odds are - you're in a Ch13 because you don't qualify for Ch7.

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