Chapter 7 reaffirmation requires you to make full monthly vehicle payments. Consider reducing loan payments through cramdown in Chapter 13. The last two blog posts have been about keeping your vehicle in a Chapter 7 case. Two weeks ago was about the benefits of reaffirming the vehicle’s loan. Last week was about possible ways of keeping the vehicle by … Read More
Chapter 7 can’t directly help much your vehicle loan. But Chapter 13 can: it can buy you much more time and likely lower your payments. Problems to Solve Last week we addressed the kind of help Chapter 7 “straight bankruptcy” provides on your vehicle loan. Mostly it clears the deck of your other debts so that you can afford … Read More
Bankruptcy gains you lots of leverage with your vehicle loan. Chapter 7 helps simply by getting rid of most or all of your other debts. Here’s the Problem You’re paying on a car or truck. You absolutely need this vehicle for getting to work, and to keep your life going. You can’t do without it. But you’re having trouble … Read More
Reaffirming a secured debt, like a vehicle loan, can be a good way to keep that collateral/vehicle. But Chapter 13 is sometimes better. The last 5 blog posts in December were about keeping the collateral you want by “reaffirming” the debt. “Reaffirmation” applies only to Chapter 7 “straight bankruptcy”cases. (We’ve focused mostly on reaffirming a vehicle loan.) Today we … Read More
“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.
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.
You can save your vehicle with Chapter 7 if you can quickly catch up. But if you can’t, consider Chapter 13.
Bankruptcy can make it possible to keep your vehicle. You have two ways, depending on how much help you need.
Whether you can get your vehicle back depends on how long ago it was repossessed and whether you file under Chapter 7 or Chapter 13.
If you have a relatively new vehicle loan, waiting until you’ve had it for at least two and a half years can save you thousands of dollars
Here’s some of the very good news you might hear if you followed up on your New Year’s resolution to go see a bankruptcy attorney.
File under Chapter 7 if you don’t need lots of help keeping your vehicle. File under Chapter 13 if you do.