There are special requirements for retaining a car that was purchased within 910 days (2.49 years) prior to filing for bankruptcy protection. If your car is secured by a loan to a creditor and purchased within 910 days of filing, your plan must pay the creditor the full amount of the debt against the car, plus interest, in equal monthly payments. In most jurisdictions, if the equal monthly payments do not begin in month one (1) of your plan, you must pay the creditor special payments called “adequate protection” until regular payments begin, so the creditor receives an amount of its secured claim in the beginning of your bankruptcy. Consult your attorney if the interest rate on your automobile loan is very high. It may be adjusted in some Chapter 13 plans.
If the car was purchased more than 910 days prior to filing for bankruptcy protection, you will be expected to pay an amount to the creditor at least equal to the value of the automobile at the time you file your Chapter 13 plan. Any amount due to the creditor over the value of the car will be paid as an unsecured debt. You must maintain property insurance on the vehicle if you owe money on it.