If you are experiencing financial problems and are contemplating bankruptcy but don't want to lose your personal possessions, Chapter 13 bankruptcy might be the best choice for you.

If you are eligible for and successful in obtaining Chapter 13 bankruptcy protection then you will develop a financial plan with your creditors to pay off your debts. In the case of car owners who don't want to lose their vehicle, you may be able to negotiate a reduced rate of payment so that you will not be in danger of having your auto repossessed.

Generally car loans that are less than 910 days old must be paid off at their full value. If you are able to obtain a bankruptcy filing than it is possible to have your interest rates reduced, according to Banknote.com. However, if the loan has been taken out for longer than 910 days than you will pay a reduced amount based on the car's current market price.

In order to keep your car and file for bankruptcy you cannot opt for Chapter 7 bankruptcy. This type calls for the consumer to liquidate their assets in order to pay off all debts.

Have questions pertaining to Chapter 13?  Contact us to get answers from a South Texas bankruptcy lawyer.