Q: Can I change a Chapter 13 to a chapter 7 and still keep my car that is worth far less than the payments I am making?
A: If you want to keep your car and transfer to a 7, you need to speak to an attorney in person about how to do that.
A: Your ability to keep an automobile in a Chapter 7 depends primarily on the amount of equity which you have in the car (fair market value above and beyond the amount owed). Although there are two sets of exemptions available in California, if the car is "worth far less than the payments I am making", you can normally qualify to keep the car if you convert to Chapter 7. Just be sure you understand all the consequences of converting the case, and that you are not creating other problems. While we always suggest you consult a bankruptcy attorney, you can find a list of California exemptions online, or in the California Codes of Civil Procedure at sections 703 and 704.
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