Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
A vehicle lease can cost you less up-front and each month, but is in reality very expensive. Bankruptcy is your way to break the contract.
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.
“Cramdown” of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
A reaffirmation agreement is a document, usually prepared by your vehicle lender, which you sign and is then filed at the bankruptcy court.
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.
A reaffirmation agreement makes you still liable on your vehicle loan so you can keep your car or truck after writing off your other debts.
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.
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.
Decisions that seem to make sense at the time can end up being against your best interest. Hereâs what to look out for.
Bankruptcy pays a lot of attention to and can help you deal with your secured debts in many favorable ways.
You can save your vehicle with Chapter 7 if you can quickly catch up. But if you can’t, consider Chapter 13.