It is possible to refinance a vehicle while in Chapter 13 bankruptcy, but it can be more complicated than refinancing outside of bankruptcy.
In Chapter 13 bankruptcy, you are required to make payments to a court-appointed trustee who then distributes the funds to your creditors according to a court-approved plan. Any new debts or refinancing must be approved by the bankruptcy court and included in your repayment plan.
To refinance your vehicle, you would need to obtain court approval, which typically involves filing a motion and providing documentation to support the refinancing. The court will then review your request and determine whether it is in your best interest and the best interest of your creditors.
If the court approves your refinancing request, you will need to provide proof of the refinancing to your trustee and adjust your repayment plan accordingly. This may involve increasing your monthly payments to account for the new debt.
It is important to note that the process of refinancing while in Chapter 13 bankruptcy can be complex and time-consuming. You may want to consult with a bankruptcy attorney to help you navigate the process and ensure that your rights and interests are protected.