Cramming Down Auto Loans

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 principal 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.

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 principal 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.

To File Chapter 13 Bankruptcy, Contact Us at Our Daly City Law Firm

Call our Burlingame 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.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.