Saving Your Car with Chapter 13 Bankruptcy
Bankruptcy is often characterized as a frightening undertaking, but this is actually far from the truth, as in most situations it actually can provide an enormous amount of relief from the stress involved with juggling significant debt and trying to keep up multiple payments. In fact, filing for Chapter 13 bankruptcy may save a number of possessions you may have thought you had to give up, including your car if you’ve gotten behind on payments and are concerned about losing the vehicle to repossession.
At Hong Law, PLC, our compassionate Cedar Rapids Chapter 13 bankruptcy attorneys can help guide you through every step of the bankruptcy process, allowing you to consolidate all of your debts into one manageable payment. With the support of one of our bankruptcy lawyers, you can begin working towards the debt relief you need. Call our supportive team at (319) 294-5853 to learn more.
Retaining Vehicle Ownership through Chapter 13
Filing for bankruptcy may prevent your car from being repossessed in a variety of ways, including:
- Filing for bankruptcy places an automatic stay on attempts to collect on your debts, meaning your car cannot be repossessed until your Chapter 13 repayment plan is ruled on.
- In some situations in which your car is repossessed shortly before filing for bankruptcy, you may be able to regain ownership by including your car loan, including any back payments owed, in your repayment plan.
- Some long-term car loans can result in the value of your loan being greater than the actual value of the car. In such a case you may be able to perform a “cramdown,” which will allow you to only include the true value of your vehicle in the repayment plan, freeing up the remainder as unsecured debt.
These are just a few of the many advantages that applying for Chapter 13 bankruptcy gives eligible individuals.
With the assistance of a Cedar Rapids Chapter 13 bankruptcy lawyer, you may be able to avoid the hassle and stress of losing your car to repossession, while also getting your debt back under control. For a no-obligation legal consultation with our team of attorneys who sympathize with the difficult situation you may be finding yourself in, call Hong Law, PLC, today at (319) 294-5853.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office