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

UPDATED: Nov 4, 2014

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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 8 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).

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.

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