Legal Question in Bankruptcy in Texas

Chapter 13 and Automobiles

We are considering filing Chapter 13. When reading about exceptions and the estate, we are lost about what will get sold and what we get to keep. We have two automobiles, paying on the loans on each. Will we be able to keep these and continue paying on them? How are things like furniture and household items classified?


Asked on 3/16/03, 4:43 am

2 Answers from Attorneys
Michael Dover Michael A. Dover, PC

Re: Chapter 13 and Automobiles

In a chapter 13, you get to retain all of your property. You must make the loan payments on your vehicles, but you get to keep them as long as you make your payments and keep the vehicles insured. Furniture and other household goods are exempt property and you could retain those in either a chapter 7 or chapter 13. You could also retain your vehicles in a chapter 7 so long as you remain current on your payments, keep the vehicles insured, and cure any arrearage.

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Answered on 3/17/03, 1:46 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Chapter 13 and Automobiles

You should be able to keep your cars. You have options on how to handle your car payments when you are in a chapter 13 case. There is actually quite a bit of strategy invloved. As far as your household goods you will keep everything. You are entitled to get relief from your creditors. PLEASE READ MY FIRM PHILOSOPHY! I would be happy to talk with you in more detail about your particular situation. ph. (214) 979-7330

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Answered on 3/17/03, 1:52 pm


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