Photo by A n v e s h on Unsplash. Chapter 13 is more powerful and flexible than Chapter 7 in buying time on your vehicle loan or lease. It can even help more after a repossession. We’re in a series on the smart timing of your bankruptcy case. Last week we interrupted for a breaking story on the pandemic-based … Read More
This example of Chapter 13 vehicle loan cramdown illustrates better than any list of rules how you can save money immediately and long-term. Our last 3 blog posts have been about Chapter 13 cramdown of a vehicle loan. Cramdown can reduce your loan’s monthly payments, its interest rate, and the total you pay for your vehicle. Often you end … Read More
If your vehicle is worth less than you owe on it, with good timing cramdown could reduce your monthly payment AND the total amount you pay.
In a Chapter 7 case you “reaffirm” your vehicle loan if you want to keep your vehicle. This means you keep paying it.
Getting out of a vehicle lease by “rejecting” it in Chapter 13 isn’t quite as quick as in Chapter 7 but has about the same practical effect.
Vehicle leases are often not such a good deal. If you find out your isn’t, you can almost certainly “reject” that lease and pay no more.
Although Chapter 7 can work fine if you’re current on your lease, use Chapter 13 instead if you’re behind and need time to catch up.
You can most likely “assume” your vehicle lease and keep that vehicle under Chapter 7. But you need to be current or able to be quickly.
If you want secured creditors to be paid in your Chapter 13 plan, they must file proofs of claim. Let’s use the example of a vehicle loan.
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
If you are filing a Chapter 13 case for other reasons, it’s also a good opportunity to get rid of your vehicle lease if you want to do so.
Want to keep your leased vehicle but aren’t current on the payments? File a Chapter 13 case if you can’t get current right away.
If current or able to get current on your vehicle lease payments, you’ll likely be able to keep that vehicle in a Chapter 7 case.
Bankruptcy can save your truck or vehicle various ways. Enable you to pay for it by wiping out other debts. Or even by paying less for it.
Both the Chapter 7 and Chapter 13 types of bankruptcy give you excellent ways to either keep andâif you wantâsafely let go of your vehicle.
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