Your Car in Chapter 13 Bankruptcy

Learn how to deal with your car (and the related debt) in Chapter 13 bankruptcy.

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For the most part, you can keep your car when you file for Chapter 13 bankruptcy. If you are behind on car payments, you can make up the arrears through your Chapter 13 plan and avoid repossession. Even better, if you are upside down on your car loan (meaning you owe more than the car is worth), you might be able to reduce the value of your loan to the current replacement value of the car. 

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