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Can I Modify My Car Loan in Bankruptcy? 7/21/2011

 Can I modify my car loan in bankruptcy?

My car is not worth what I owe, can bankruptcy help me?

Scenario: I have three (3) years left on my car loan and I owe $4,000 more than my car is worth, what can I do?  If you have owned your car for 910 days (approximately 2.6 years) or longer and you owe more than your car is worth, you can cram it down in a Chapter 13 bankruptcy.   If your car payments are more than you can afford and you owe more than your car is worth you might want to consider filing a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy.  If your car qualifies for the cram down, you can reduce the interest rate, reduce the amount owed down to the Blue Book value of your car, and pay that amount over the life of your plan.  When your plan is complete, you will own your vehicle free and clear and be debt free.  In some cases your plan payment will be less than your original car payment.  With economic times being tough, salaries being cut, hours being cut and no pay increases, many people are considering Chapter 13 bankruptcy as a way to pay off their debts, vehicles and be debt free while starting the process of repairing their credit. 

Contact a bankruptcy attorney or bankruptcy lawyer at Tiller Law today for your free consultation regarding your options. Serving Miami, Fort Lauderdale, Hollywood, Boca Raton, West Palm Beach, Palm Beach Gardens, Jupiter, Hobe Sound, Stuart, Port St. Lucie, St. Petersburg and Tampa and throughout the State of Florida.

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