In case the car or truck is worth not as much as you borrowed from, or maybe you include paying extreme fees, stuffing down a car loan in phase 13 personal bankruptcy can reduce your balance, trim your rate of interest, and reduce the installment. A “cramdown” of a car loan happens to be a major perk available in segment 13 that isn’t available in Chapter 7 bankruptcy proceeding.
Bad car loans is damaging economically. As a case of bankruptcy attorneys in Philadelphia, I’ve come across clients with car loan amounts two, three, or fourfold value of his or her motors. Often cash advance loans bring inflated interest levels.
It’s not only debtors with terrible funding whom benefit from phase 13 cramdowns. Continue reading “Reducing your Auto Loan Balances, Interest, and Amount in Bankruptcy”