Question by xquuzme: In a Chapter 13 Bankruptcy, is it possible to keep a vehicle that you are still making payments on?
If we DO get to keep the vehicle, A 2002 Chevy Avalanche, we actually want to trade it in for something more fuel-efficient (it costs us $ 120. to fill up!). Can we do this? Should we do this before we file, so that we may be able to keep the same interest rate, or if we do this before we file, will the new loan/car have to be included in the bankruptcy? How does this work?
Best answer:
Answer by Munya Carr
You should trade it in before you file—because then you can show that you were trying anything and everything you could do to avoid bankruptcy–even trading in your beloved, gorgeous Avalanche to get a smaller vehicle!
HOPEFULLY, you have equity in the Avalanche and you’re NOT in an “upside down” loan (where you owe more than it’s worth).
Good luck.
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