Can you lower your car payments by filing chapter 13 bankruptcy?

Question

we have a truck payment of approximately $700 a month and my husband is soon going to lose his job.We have tried refinancing but everybody turns us down. I know if the car gets repossed we will have to pay the remaining balance after it goes to auction

Answer 1

I know in Arizona, if you have had the vehicle for at least 710 days, you can add the vehicle into the plan and pay it off that way. We call it crunching it down. So say you still have 70 payments left of $700, then Plan is going to crunch it down into the length of the plan which will be 60 months at the most and the car will be paid off at the end of the bankruptcy. I'd suggest finding an attorney who offers free consultations in your state though to see how its done there.

Answer 2

A bankruptcy judge has the legal right to tell the seller of the car to lower the payments to $500.   But the bankruptcy means that your credit is ruined just to keep a truck.

Answer 3

Yes they can but, chapter 13 has a lot of downfalls. For instance, they can come into your house and auction any property they deem as "unneccessary" (cable, multiple cars, t.v.s, even furniture) The lawyers charge criminal fees, up to $5000 and then the bankruptcy can be dismissed if you miss 1 payment or are even late. And even if it is dismissed, the bk stays on your record for ten years.  It looks like you are considering bk, so I will offer my advise. My company is u.s****.a. (u.s. organization of bankruptcy alternatives) certified if you want to check out some other options.

www.mydebt101.com

or if you just have questions you can email me, I wont try to sell you.

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