Quick Answer: When a Chapter 13 bankruptcy is dismissed, debtors can potentially negotiate directly with their auto lender to maintain similar payment terms outside of bankruptcy. The attorney may be able to arrange a reaffirmation agreement or loan modification, though success depends on the lender’s willingness to cooperate and the debtor’s current financial situation.
My chapter 13 is being dismissed because I could not afford no longer to make payments because of my divorce situation. I want to keep my vehicle and wanted to know if there are any options I can use regarding keeping my vehicle with the chapter 13 being dismissed, for instance my attorney making some agreement with the bank that I finance my vehicle through to keep my payments the same as I was making payment through the bankruptcy trustee.
Tara
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I’m sorry to hear about your situation and I hope I understood your question correctly. Have you talked to the bank that holds the lien on your vehicle? Sometimes they are willing to hold off on collection efforts as long as you are communicating with them and trying to pay them something. If not then you can always try to refinance with a co-signer and it might give the bank the confidence they need to give you a little more time and possibly reduce your payments a little.