Are past due car payments keeping you up at night? People considering bankruptcy are often behind on car payments by two to three months. In a Chapter 13 bankruptcy, you can keep your car even if the lender threatens repossession. In some instances, a Chapter 13 bankruptcy can require the lender to return a recently repossessed car to the debtor. Keeping the car is possible because a Chapter 13 allows you to pay off the loan (and any past due payments) through your bankruptcy plan. In some cases, a Chapter 13 can reduce the amount owing on the car to its “fair market value.” In addition, the interest rate may be significantly reduced.
If you would like to know more about your bankruptcy options, please contact me for a free consultation to discuss your financial situation.
Attorney Profile: Janet Spears, Bankruptcy Lawyer – Chapter 13