Chase Auto Finance in Chapter 13

[Faust]

Our car loan is with Capital One. The pmt is $302/mo and we are current. Will we be allowed to keep it? Will we have to reaffirm?

Thanks!

[justbroke]

You should ask the attorneys that you consult with, about the so-called "ride-through" option in your District. This would allow you to continue to pay and keep the vehicle, while discharging the debt. Yes, you would still need to keep paying to keep the car, but it's the best of both worlds.

[walkthaplank]

In a CH13 case, that payment is very modest and shouldn't give you any grief as the IRS standards are $489/mo. The only way you will get grief for it is if this is a second car in a single income family. In that case you will be allowed to keep it, but the payment will not be allowed in determining your DMI essentially forcing you to give it up. They generally don't tell you that you must get rid of something, they just make it impossible to keep it by objecting to that expense.

[justbroke]

Oops, I had Chapter 7 on my mind. I don't see any issues with you keeping the car in a Chapter 13. Talk to your attorney about doing a "cram down", but if you purchased the car within the last 910-day (2.5 years), then don't worry about the cramdown part.

I apologize for writing in terms of a Chapter 7.

[Faust]

Crap! I just realized I said Chase when I meant Capital One Auto Finance!!

[justbroke]

Crap! I just realized I said Chase when I meant Capital One Auto Finance!!

No problems, the name of the lender is irrelevant for what you were asking.