Lower Your Car Payments

Since cars depreciate very quickly it is common for the amount of your car loan to be greater than the value of your car. For this reason there are different options offered to you within a bankruptcy to lower your car payments.

Reducing Your Car Loan in Chapter 7 Bankruptcy:

We can help lower your car loan to the current fair market value by filing under our redemption program. Bankruptcy rules gives you the right in a Chapter 7 to redeem (keep) your vehicle for its current fair market value and not what you owe on it. This could potentially result in thousands of dollars in savings. Even if you are behind on your payments you can still qualify! There is no additional fee for this service. We want all of our clients to benefit from lowered car payments.

To qualify for the redemption program you must meet all criteria:

Car is less than 10 years old and less than 100,000 miles More than 10 payments left

Reducing Your Car Loan in Chapter 13 Bankruptcy:

In a Chapter 13 you may be able to reduce the amount of your loan which is called a cramdown. Essentially, you can reduce the amount you owe to equal the value of the car. Whatever is left becomes unsecured debt, and is treated like your other unsecured debts. There is one catch – you must have bought the car more than two and a half years ago before you filed bankruptcy.

When you cram down a car loan in Chapter 13 bankruptcy, the law also allows you to lower your interest rate on the loan. The interest rate will be determined by your specific bankruptcy court but it will generally be the prime rate plus a little extra. In most cases, this will be lower than your original car loan rate.

Our Office:

We have multiple convenient locations:

San Bernadino County

Phone and Fax:
888-LADY-121 or 888-523-9121
ContactUs@LawOfficesOfLadyJustice.com

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