Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Chapter 13 bankruptcy and vehicle ownership

Tennessee residents who have substantial debts may use the Chapter 13 bankruptcy process to address them if they have a regular source of income. This type of bankruptcy requires the court to approve a repayment plan that lasts either three or five years. If they own a vehicle before filing for bankruptcy that they want to keep, or if they want to purchase one during or after they process, this may be possible.

Chapter 13 bankruptcy filers may generally retain ownership of the vehicle they own before filing for bankruptcy. However, there are some situations in which they may not be allowed to do so.

If the monthly auto payments are overly high, the debtor would be prevented by the court from using that payment to calculate disposable income. The Chapter 13 bankruptcy process allows filers to keep money that is to be applied to sensible and necessary living expenses. Such a large payment could affect the repayment schedule.

For debtors who have upside down loans and want to file for bankruptcy, a loan cramdown may be ideal. After reducing the loan amount to the vehicle's cash value, the remaining amount may be classified with the other unsecured debts. However, in order to use this tactic, the debtor would have to had purchase the vehicle at least two and a half years before filing a bankruptcy petition.

Chapter 13 is just one form of debt relief that might be available to consumers. An attorney can outline the eligibility and other requirements and describe its pros and cons.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top