Americans love their cars. Unfortunately, our cars often get us into financial trouble and then we find ourselves in what we think is a no win situation. Maybe you are behind on car payments or maybe you are so far upside down in a car that you don’t see any way out from under it. Or maybe you are behind on payments, but now have a way to catch up if only you had some time. Chapter 13 bankruptcy can often provide a solution to these common problems
- Chapter 13 Bankruptcy can get your car returned if it has been re-possessed as long as the creditor hasn’t sold the car. Once your bankruptcy lawyer files your case, he can contact the creditor and demand the return of your vehicle.
- Chapter 13 bankruptcy plans can lower your car payments so you can get them caught up over time – generally 3 to 5 years depending on your chapter 13 bankruptcy plan.
- Chapter 13 bankruptcy can lower your interest rates so you can get your car loan paid off. Many title pawn loans I see have interest rates in the neighborhood of 200% per year. We can use chapter 13 bankruptcy plan to get the interest rate lowered to an interest rate that is in line with the current prime rate or lower, currently around 4 or 5 percent.
- Chapter 13 can allow you to reduce the amount you owe on your car to the value of your car the day you file your case. You must have purchased your vehicle more than 910 days before the date you file your case to be able to do this. For example, if you purchased your car three years ago and you owe $15,000 on it but it is only worth $10,000, you will only have you pay $10,000 in your plan.
If any of these situations have you in a bind, it could be time to see your Newnan Bankruptcy Attorney to see if these solutions can get you back on the road.