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Should I Include Repossessed Truck in Chapter 13 Bankruptcy – Jessca

Consumer Complaint Submission
Written by Consumer

I am going to file a chapter 13 bankruptcy next week because I had a car repossessed and they auctioned it for much less than I owed.

I have since financed another vehicle. I am up to date on the payments and can now afford to keep them up to date.

My question is whether to include it in the bankruptcy or not? If I include it, I save money on the interest rate and end up paying a little less when it’s all said and done but would it be better for my credit as far as buying another vehicle or a house in the near future if I keep it out of the bankruptcy and continue to pay for it seperately? So basically what are the pros/cons of including or not including my truck in the bankruptcy? Thank you.

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2 Comments

  • Hi Jessca,

    What other debts are you including in the chapter 13 besides the deficiency balance on the repo?
    Have you been sued on the deficiency balance?
    Is the deficiency balance with a debt collector who has threatened suit?

    I am asking because the little information you provided leads me to think you are only filing bankruptcy to deal with the one debt. There may be other options to consider outside of bankruptcy.

    Filing chapter 13 bankruptcy will mean you financial like will be, for the most part, controlled by the trustee for the next 3 or 5 years. You will have to seek trustee permission when obtaining most forms of new credit and loan products. With the bankruptcy on your credit report it will be unlikely you would qualify for mortgage underwriting for at least 2 years and there will be other hurdles (like the trustee) you will have to clear after the 24 months.

    Please provide more detail in a comment to this post.

  • Hi Jessca,

    What other debts are you including in the chapter 13 besides the deficiency balance on the repo?
    Have you been sued on the deficiency balance?
    Is the deficiency balance with a debt collector who has threatened suit?

    I am asking because the little information you provided leads me to think you are only filing bankruptcy to deal with the one debt. There may be other options to consider outside of bankruptcy.

    Filing chapter 13 bankruptcy will mean you financial like will be, for the most part, controlled by the trustee for the next 3 or 5 years. You will have to seek trustee permission when obtaining most forms of new credit and loan products. With the bankruptcy on your credit report it will be unlikely you would qualify for mortgage underwriting for at least 2 years and there will be other hurdles (like the trustee) you will have to clear after the 24 months.

    Please provide more detail in a comment to this post.

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