In these difficult economic times, a high car payment coupled with a high mortgage payment and other living expenses can be enough to push you to the brink financially. There is a solution available — filing for Chapter 13 bankruptcy provides an opportunity to refinance your vehicle through cramming down the loan taken for its purchase.
To schedule a free consultation to discuss the benefits of vehicle cram downs with an experienced Southampton lawyer, call the Law Offices of Michael S. Schwartz at (215) 375-7346, or contact us online.
With office locations in Southampton, Havertown and Perkasie, Pennsylvania, we are dedicated to providing guidance to our clients, helping them to achieve their financial goals.
Bucks County Bankruptcy Reorganization Lawyer
Under Chapter 13 bankruptcy laws, you may be eligible to cram down the loan obtained to purchase your vehicle to its current (appraised) value, also referred to as being "upside down". For example, if the appraised value of your vehicle is $10,000 and the remaining amount of your loan is $12,000 you may be able to reduce the amount owed on your vehicle to $10,000.
You may also extend the repayment period on the loan so that you can pay it off as part of your Chapter 13 bankruptcy repayment plan, usually within three to five years. In some cases, you may also be able to reduce the interest rate to the prime rate of interest plus a risk premium.
The remaining portion of the loan subject to the vehicle cram down is considered part of your unsecured debt, to be addressed in your Chapter 13 repayment plan. At the completion of the plan, the debt is discharged.
Loan Modification Law Firm, Serving Perkasie, Havertown and Southampton, PA
To discuss vehicle cram downs as part of bankruptcy reorganization, contact a Havertown attorney at the Law Offices of Michael S. Schwartz by calling 866-584-7966 toll free or contact us online to schedule a free consultation.
We have offices in Southampton, Havertown and Perkasie.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
