December 9th, 2008 by Reed Allmand 
Since the 2005 changes in bankruptcy law, including a vehicle in a Chapter 13 bankruptcy is a lot more complicated. The bankruptcy law states that if you are filing a Chapter 13 bankruptcy and you purchased your vehicle less than 910 days ago, you are required to pay the full balance and interest you owe on the car during your Chapter 13 bankruptcy. In other words you won’t save a dime. The only perk you get is to keep the vehicle. But if you’re filing Chapter 13 bankruptcy and you purchased your vehicle more than 910 days before filing bankruptcy, the bankruptcy trustee may allow you to pay the "fair market value" of the vehicle, plus reduced interest. Because most cars depreciate significantly during the first 3 – 4 years, the "fair market value" you will pay will most likely be significantly less than your original car loan.
Since the Chapter 13 bankruptcy 910 day rule is still evolving, many judges interpret the rule differently. That’s why if you’re filing Chapter 13 bankruptcy and have a vehicle (with a loan) it is critical that you speak with your bankruptcy attorney about any recent changes in the 910 rule and how it will affect your Chapter 13 bankruptcy case. It is very important that the 910 day rule be approached properly because it could end up becoming very costly for anyone filing Chapter 13 bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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