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Legal Expert Justin
Legal Expert Justin, Attorney
Category: Bankruptcy Law
Satisfied Customers: 162
Experience:  Attorney
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If I file a chapter 13 do I have to include my car in it? I

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If I file a chapter 13 do I have to include my car in it? I have a consigner on it and don't want there credit messed up.

Hello! My name is ***** ***** I'll be the Expert assisting you today. Yes, you will have to include your car in the chapter 13 proceedings. However, in your proposed plan you can state that you intend to keep the payments current (at the same amount). Assuming the plan is approved, your loan for the car and any cosigners will not be affected.

If your chapter 13 plan includes reduced payments or a cramdown (readjusting the debt owed to the current value of the property), then the creditors could still attempt to collect the difference from the cosigner. Do you have any more questions today?

Customer: replied 1 month ago.
Is the consigner notified? Do I have to have the payments withheld from my payroll check?

Payments do not need to be automatically deducted, but you can set it up that way if you wish. There is no requirement that you send a cosigner notice of your bankruptcy, but they will most likely find out from your mutual creditor (who will receive notice).

I hope I’ve provided the information you were seeking. If you are happy with my service, your 3, 4, or 5 star rating at this time is most welcome. If you need more help, please let me know so I can continue to assist you.

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