Ifmy Chapter 13 is in default, will my car loan account be reopened?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Ifmy Chapter 13 is in default, will my car loan account be reopened?

I have filed Chapter 13. I am in default by 2 months and have only been on the plan for 5 months. A debt that was included was my car loan. The debt is closed on my credit report. If my Chapter 13 is dimissed, can my account for the car loan be reopened? Will my car be at risk for repossesion?

Asked on June 14, 2012 under Bankruptcy Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your Chapter 13 reorganization is in default and eventually gets dismissed by the bankruptcy court your loan for your car then reverts back to the original agreed upon terms and will not be able to be reopened by the bankruptcy court. If you do not stay current on your car loan, the vehicle is at risk for repossession.

From a practical standpoint, assuming you are current on your car payments under your Chapter 13 bankruptcy and it is dismissed, the lender may still elect to keep the monthly payments you are making and not seek the original monthly terms under your loan pre-bankruptcy filing.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption