Can I Change My Mind About Surrendering My Property in a Chapter 13 Bankruptcy ?
If you are in a Chapter 13 Bankruptcy and had decided to keep your car and pay for it through the Plan, can you change your mind after your Plan is confirmed if your change of mind is in good faith? It seems that according to an article by Bobby Wilbert of the NACBA you can. In the case he reports on the debtor made a motion to modify the Chapter 13 Bankruptcy Plan 16 months after it was confirmed. The debtor had proposed to retain personal property that secured a debt with a whopping 38.72% interest rate. The debtor wanted to change the Plan to allow for surrender of the property and then to reclassify the deficiency that remained after the property was sold into an unsecured non-priority debt that would then get discharged at the end of the bankruptcy. Note that this must be done in good faith. If the court was presented with evidence that the debtor never intended to keep the property through the duration of the bankruptcy, that would likely be considered a good example of bad faith.