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 you are only liable for the amount the car is worth.
At The Law Office of John Iaccarino, in San Mateo County, you will work with a California lawyer experienced with helping clients cram down car loans. Call 707-230-1524 to schedule a free initial consultation and discuss how you can keep your car through Chapter 13 bankruptcy.
The statutes concerning cramming down auto loans are specific, but confusing. 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.
To File Chapter 13 Bankruptcy, Contact Us At Our Daly City Law Firm
To schedule a free consultation with an attorney, call my office or send me an email. I find great satisfaction in helping clients keep their possessions as they start over financially.
The Law Office of John Iaccarino is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.