East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Is ownership of a car protected in Chapter 13 bankruptcy?

When New Jersey consumers experience financial difficulties with no indication that their circumstances will improve shortly, they may consider filing for bankruptcy. However, those who cannot do without their cars may be concerned about the possibility of having to give it up if they file for Chapter 13 bankruptcies. Except under a few circumstances, consumers may be allowed to keep at least one vehicle.

One of the ways in which the U.S. Bankruptcy Code protects consumers is the automatic stays that become effective upon the filing for bankruptcies. Consumers who have fallen behind in their auto payments can rest assured that any repossession action against them will stop. Even if an auto loan company repossessed a consumer's car shortly before he or she filed for bankruptcy, an experienced bankruptcy attorney might be able to get it back.

However, if the equity on the vehicle is above a certain level, or if the consumer has a luxury vehicle with very high payments, the bankruptcy court may decide to seize the car. Chapter 13 allows a person to reorganize debt payments over an extended period of three to five years according to a court-approved payment plan. Therefore, if the person can continue paying the installments, ownership of the car will likely be safe.

Financial problems can adversely affect New Jersey families, and rather than spending months of trying all kinds of remedies suggested by others, it may be more appropriate to seek legal advice. Although it is true that each consumer's circumstances are unique, a seasoned attorney has likely dealt with similar situations. With the information and advice provided by a skilled lawyer, informed choices can be made, and if filing for Chapter 13 bankruptcy is the choice, an attorney will provide support and guidance throughout the process.

Source: autocreditexpress.com, "Can You Keep Your Vehicle in a Chapter 13 Bankruptcy?", Nov. 5, 2016

No Comments

Leave a comment
Comment Information


Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.



  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top