Frequently Asked Questions

Yes, in both a Chapter 7 as well as a Chapter 13 you may be able to keep your motor vehicle and continue making the payments. In a Chapter 7 you have the option to reaffirm the debt or to redeem the asset or to simply continue making the payments. Similarly in a Chapter 13 reorganization Bankruptcy you can continue making the monthly vehicle payments and in the Chapter 13 bankruptcy in certain situations you may even be able to “cram down” the debt owed to the value of the vehicle by the filing of a motion with the Court. 

 Yes the filing of a bankruptcy will in most instances stay any creditor action. The automatic stay imposed by the bankruptcy filing prevents any creditor actions. This includes a lender foreclosure sale. 

 Yes you can in a Chapter 13 bankruptcy. where the required monthly plan payment you will be required to make includes an amount for mortgage arrears. The arrears are paid out over the life of the Plan.