Chapter 13 bankruptcy is often hailed as an option that will allow you to keep your possessions, including your vehicle. In situations where your car is worth less than you owe on it, you may have the opportunity to cram down the principle of the loan as part of a Chapter 13 bankruptcy plan so that you are only liable for the amount the car is worth.
Contact our San Mateo cram-down car loan lawyers to schedule a free initial consultation and discuss how you can keep your car through Chapter 11 or Chapter 13 bankruptcy.
Daly City Bankruptcy Petition Lawyers
The statutes concerning cramming down auto loans are very specific. When filing for Chapter 13 bankruptcy, you have the opportunity to keep your vehicle and cram down the amount owed to the principle if the car was purchased 910 days prior to when bankruptcy was filed, known as the "hanging paragraph" of the relevant section of the bankruptcy code. This limitation does not apply if you purchased the car for business use.
However, filing for individual Chapter 11 bankruptcy eliminates this requirement, meaning that no matter when you purchased your car, you are able to cram down the loan according to the value of your car.
Our knowledgeable San Mateo cram-down attorneys have more than 20 years of experience assisting clients. We will evaluate the entirety of your circumstances to ensure that if you decide to file for bankruptcy, you choose the option that best suits your needs.
Redwood City, California, Chapter 13 Law Firm
Call our Daly City bankruptcy petition attorneys or send us an e-mail to schedule a free initial consultation. We find great satisfaction in helping our clients keep their possessions as they start over financially.
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