San Diego Bankruptcy Lawyer | Will my car or truck be repossessed if I file Bankruptcy?
Will my car or truck be repossessed?
NO! Once the papers are brought to the courthouse, a federal court order goes immediately into effect, preventing a car from being repossessed. In a Chapter 7 bankruptcy, the client simply continues to make the payments on the loan. In a Chapter 13, a monthly payment is worked out with the court, which in turn pays the car lender. That monthly payment is often hundreds of dollars less than the original payment, and can be imposed upon the lender regardless of how many months the client may have missed prior to filing bankruptcy.
We can even lower the purchase price, car or truck payments you are making, and the interest you are paying.
In a Chapter 13 bankruptcy, the client typically pays the value of the vehicle with either the contract rate of interest OR the market rate, whichever is lower. Since most clients owe thousands of dollars more than their vehicles are presently worth, they get to save a substantial amount on the purchase price. If we can also slash the interest rate-perhaps in half-the result is a monthly payment often HUNDREDS OF DOLLARS less than the original car payment. For more information see my blog article, “What are my options if I owe money on a car and I file Chapter 7 Bankruptcy ?”
