If I filed a Chapter 13 and want to convert to a Chapter 7, will I lose my car?

Asked on November 4, 2014 under Bankruptcy Law, Kansas


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If you have paid off your car and do not owe any money on it, you retain the car and list it under the automobile exemption in the Chapter 7 bankruptcy.

If you still owe money on the car, you can keep  the car by reaffirming the debt.  This means you continue making payments to the lender.  To reaffirm the debt, include a Statement of Intention with your Chapter 7 bankruptcy documents stating your intention to keep the car by reaffirming the debt.  Send a copy of your Statement of Intention to the lender.

Reaffirming the debt in your Chapter 7 bankruptcy will allow you to renegotiate the debt and the lender may offer you better terms (lower payments).

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