Hiding Your Car from the Repo-Man? the Chapter 13 Bankruptcy Payment Plan

by on January 19th, 2011
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When your vehicle has been placed in repossession status, hiding your car from the repo-man may make some sense, at least temporarily. Hiding your car from the repo-man may buy you some well needed time.

But if you are growing weary of hiding your car in the next zip code, or the constant calls from the vehicle finance company, chapter 13 bankrupty may be the only option you have to achieve an affordable payment plan. However, if your vehicle finance company refuses to work out a payment plan to stop the repossession and you are growing weary of parking your vehicle in the next zip code, chapter 13 bankruptcy may be the only option you have to obtain an affordable payment plan.

After all, hiding your car from the repo-man is unsustainable.

Chapter 13 bankruptcy is a payment plan of all or part of your debts and is supervised by a bankruptcy court Trustee. The chapter 13 bankruptcy compels the vehicle finance company to accept your proposed payment plan as long as the payment plan meets chapter 13 bankruptcy guidelines. A successful chapter 13 bankruptcy filing will stop the repossession attempts.

The bankruptcy court has the power to restructure your loan agreement with the vehicle finance company and will allow you to have an affordable payment plan directly with the the bankruptcy court. The payment plan is based on your income and lasts over the period of 3 to 5 years.

Bankruptcy court does not require that you retain an attorney although it’s recommended that you seek the advice of a bankruptcy attorney before filing chapter 13 bankruptcy. As bankruptcy attorney fees can be very costly, ranging anywhere between $3,500 to $4,500 dollars, the bankruptcy court will allow you to utilize the assistance of a Bankruptcy Petition Preparer in the filing of your chapter 13 bankruptcy and payment plan.

As a bankruptcy petition preparer, I assist individuals that can’t afford the attorney fees file for chapter 13 bankruptcy without an attorney. Bankruptcy court recognizes a person filing bankruptcy without an attorney as “Pro Se”. Many individuals seeking bankruptcy protection wish to obtain a payment plan with the vehicle finance company after attempts to negotiate a payment plan has failed.

The chapter 13 plan must clearly state how the vehicle will be repaid. For example, it must state whether the vehicle finance company will receive payment for the entire vehicle loan, the delinquent portion only, or the market value of the vehicle. Either payment plan work-out depends on a number of factors, which only a bankruptcy attorney can help you sort out.

The chapter 13 plan also requires eligible income and those income requirements can also be best evaluated by a bankruptcy attorney.

Once your chapter 13 plan is filed, you will no longer have to worry about hiding your car from the repo-man, because the court will “stay” all collection activity against you so long as you comply with your chapter 13 plan.


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