We own two vehicles and have a loan on a third. When you don’t have enough income to pay your bills each month, Chapter 7 bankruptcy can help get rid of qualifying debt quickly. Chapter 13 is one of the two types of bankruptcy normally filed by consumers in the U.S. If you owe money on car and we file a Chapter 13, the balance that you owe on the car will be paid in your Chapter 13 plan. How many cars can we keep if we file for bankruptcy? Keeping your car during a chapter 13 bankruptcy is easier than keeping your car during a chapter 7.This is because filing a chapter 13 means you are promising to repay your debt over a period of time, usually three to five years. In exchange, the bankruptcy trustee is allowed to sell your nonexempt property and use the proceeds to pay your unsecured creditors. People who lose cars after they file Chapter 13 bankruptcy usually do so for one of three reasons. Each state allows bankruptcy filers to keep certain types of property up to a certain dollar limit. You can keep two cars in Chapter 13 bankruptcy, but you’ll need to be prepared to show that you can pay creditors for any vehicle equity that isn’t covered by a bankruptcy exemption.And, if you’re making two car payments (or even one), you’ll have to prove that you need both vehicles to earn income to fund the plan and that the payment amounts are reasonable. My bankruptcy was discharged in February and I have continued to make my car payments, yet on my credit report the lender has listed the loan as part of my Chapter 7. You’ll have the choice to either keep or surrender your vehicle, but this decision comes down to your financial situation and available funds. Chapter 7 bankruptcy quickly discharges certain types of debt while allowing you to keep the property you need to live and work. What you get to keep when you file bankruptcy depends on the type of bankruptcy you file and the value of the assets you own. In a Chapter 7 bankruptcy, your non-exempt property is liquidated. In a Chapter 7 bankruptcy, the trustee will seize assets in the bankruptcy estate to pay the debtor's creditors. For chapter 13, you can include you cars in your payment plan. What if you have an old run down 2000 Mazda that is paid off in full, worth only $4500. Therefore, if you want to keep a car that has more equity than you can protect, you’ll pay for the nonexempt equity in your three- to five-year repayment plan. You can convert your Chapter 13 case to a Chapter 7 case by filing a motion to convert in bankruptcy court, but you must first qualify for Chapter 7. A vehicle can be one of those assets, because bankruptcy courts generally recognize that one needs a car to get and keep a job. If you file for Chapter 7 bankruptcy, your property may be seized to pay your debts, including any cars or boats you may own. Although a Chapter 7 bankruptcy is known as a "liquidation" bankruptcy and may cause you to lose some assets, there are also some built-in protections known as exemptions to a Chapter 7 case. Lets start with Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you can keep as many cars as appropriate. Unlike Chapter 13, Chapter 7 requires no repayment plan. In Chapter 7 bankruptcy there are some rules. Many bankruptcy filers are worried about what will happen to their cars. Under a Chapter 7 bankruptcy, the bankruptcy trustee can sell your home to pay your creditors. However—just as in a Chapter 7 case—you must pay your creditors an amount equal to the nonexempt vehicle equity. We want to keep the cars that have the $400 and $1100/ mo. This is called the "motor vehicle exemption" under the majority of state bankruptcy laws. 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