Last updated September 18, 2026
Short answer
Chapter 13 can stop a repo and pay a car loan through the plan. If the loan is a purchase-money security interest incurred within 910 days of filing, § 1325(a)’s hanging paragraph generally blocks cramdown. Older or non-PMSI loans may be crammed down to value.
Interest, value, and PMSI status are evidence questions. Insurance is required. A plan that pays the car but starves living expenses will not confirm. Leases are treated differently from loans.
How Brock & Stout can help
We pull the contract date, value the car, and draft plan language for cure or cramdown as the Code allows. We cannot guarantee confirmation of a cramdown the lender fights.
Frequently asked questions
Sometimes, through stretch, interest adjustment, or cramdown when the hanging paragraph does not apply. Not every loan qualifies.
Related resources
- Can Bankruptcy Stop Repossession? — Can Bankruptcy Stop Repossession?
If the vehicle is still in your driveway, a timely filing generally stays the repo. If the lender already has the car, you need a turnover strategy, adequate protection, and speed. Once the car is sold, the issue becomes a [deficiency](/bankruptcy-attorneys/repossession/deficiency-balances).
- Can I Keep My Car If I File Bankruptcy? — Can I Keep My Car If I File Bankruptcy?
Keeping a car usually requires two things: exemption protection for your equity, and a strategy for the lender. Chapter 7 options include stay-and-pay, reaffirmation, redemption, or surrender. Chapter 13 can catch up a car loan and, in some cases, reduce the secured claim.
- Car Loans in Chapter 7 Bankruptcy — Car Loans in Chapter 7 Bankruptcy
Chapter 7 does not rewrite a car loan over five years. You generally reaffirm, redeem in a lump sum, surrender, or in some districts keep paying without a reaffirmation (with lien risk). Missed payments lead to stay relief and repo.
Facing an urgent debt problem?
Talk with a bankruptcy attorney about garnishment, foreclosure, repossession, or a lawsuit. A consultation can explain options. It does not guarantee a particular result.
This page is general educational information about bankruptcy as of the date shown. It is not legal advice, does not create an attorney-client relationship, and does not guarantee results. Outcomes depend on individual facts and current federal and state law. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
