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
Photo by Clem Onojeghuo on Unsplash If you’re even considering bankruptcy, consider taking some actions which seem to go against common sense, including about your possessions. Last week we made the point that if bankruptcy is even a possibility for you, please quickly get legal advice. We said when considering bankruptcy you should get legal advice to find out: if … Read More
File bankruptcy before your lender takes your vehicle. But if you couldn’t, bankruptcy may still get back your just-repossessed vehicle. When Does a Lender Repossess a Vehicle? When CAN a vehicle lender repossess your vehicle? Just about all vehicle loan contracts let the lender repossess the minute you are late on a payment. There may be a legal grace … 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.
Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 “straight bankruptcy” can’t.
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.
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
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.
Keeping a vehicle and its debt is sometimes not the best option. Chapter 7 and Chapter 13 can both give you a safe way out.
“Cramdown” of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
If your vehicle is worth less than you owe, Chapter 13 “cramdown” can reduce your monthly vehicle payment and the total you pay on the loan.
You may be able to keep your vehicle for less money by “redeeming” itâpaying its present fair market value instead of the full debt.
It’s way past Thanksgiving but Chapter 13 has many features that make you take notice and appreciate what they can accomplish.
The second scenario, the Chapter 13 solution for keeping a vehicle if you’re behind on payments.
Two similar scenarios, two very different solutions for keeping a vehicle if you’re behind on payments.
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