Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free
888-542-1300

Vehicles and Chapter 13

Ohio who are struggling with debt are often trying to find different ways of managing their finances. In some cases, credit counseling or consolidation may be options, but these alternatives are not always feasible. In such cases, bankruptcy may be the most practical solution.

Unfortunately, many people have misconceptions about bankruptcy. One of which is that they will have to give up most or all of their property, including their vehicle. However, it is quite possible to keep a car in a Chapter 7 bankruptcy, although it depends upon the circumstances.

In the case of a Chapter 13 bankruptcy, there are several factors that could be considered when it comes to vehicle ownership. Chapter 13 is a form of bankruptcy in which debtors are required to repay creditors over a period of from three to five years pursuant to a court-approved plan.

Equity in the vehicle would be one consideration, as is the total worth of the vehicle. In a Chapter 13 plan, debtors are required to apply all available income to debt repayment, and can only keep that which is necessary to pay for regular living expenses. While car payments would generally be allowable under such a plan, an excessive payment for a very expensive vehicle may not be approved.

Individuals who are considering filing for bankruptcy and are concerned about being able to keep their car may benefit from speaking with an experienced bankruptcy attorney. There may be other forms of debt relief that are available and which do not require this type of analysis to be made. However, one advantage to bankruptcy is that filing puts at least a temporary stop to collection activities.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

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.

close

Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions