Making my car payments in a CH13...but want to get rid of it.

[jkim0907]

Hello, I'm currently making payments on my secured vehicle in my chapter 13 plan. I want to get rid of the car. Is there any recourse with this? I just want to get rid of the car, but I still have a balance on the car and dont have a title.

Not sure if I can just give the car back to the lender. I believe I still have a principal balance on the car of about $7K. I think that the kelly blue book value for the car is about $5.5K...so it is a bit under.

Anyone been through this situation?

[Floridagail]

You would have to notify the trustee thru your attorney, then if you get rid of it, that means you are able to pay more since you have no car payment. My niece recently 13, traded her car for new one by doing that, her payment did not go up.

[159515951]

If you had surrendered the car in your Plan, the payment would likely be higher. Are you wanting to replace the car with another, or just surrender it and be done with it?

[jkim0907]

I'm making payments in the confirmed plan. I dont mind if the payment stays the same, I just want to be done with the car. I may be getting a company car that I'll have so I wouldn't have a need for this one... and if I ever did need one, I would probably just want to pay cash for a decent used one. I just do not want the car.

In hindsight, I wish I would have just surrendered my car from the getgo.