People who fear losing things, like their car, may find the process of filing for bankruptcy to be frightening. However, declaring bankruptcy need not result in the loss of all of one’s valued possessions. There are choices available if you wish to pay off massive debt but keep your car. Benefits from bankruptcy Chapter 13 in Rancho Cucamonga CA can help you keep your car.
Chapter 13 bankruptcy might help you make up any missed car loan payments. In a three- to five-year repayment plan, the debtor is able to reorganize their debt through Chapter 13 bankruptcy, often known as reorganization bankruptcy. The filer may be able to discharge some debts with this choice while gaining more time to pay off other bills.
Read on to learn more and then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 if you would like a free legal consultation for filing bankruptcy Chapter 13 in Rancho Cucamonga CA.
How are your car payments affected by bankruptcy Chapter 13 in Rancho Cucamonga CA?
You might be able to lower your debt if it exceeds the value of the car. The advantages of Chapter 13 bankruptcy, which include automatic stays, time to make up missed automobile payments, and even a reduction in the size of your car loan, can help you keep your car while reducing your debt. Examples of how Chapter 13 bankruptcy can allow you to keep your car are provided below:
Automatic Stay: Once you file for bankruptcy, creditors are prohibited from contacting you or repossessing your property. An “automatic stay” is the name given to this action. Therefore, when your bankruptcy application has been processed, your car cannot be repossessed by creditors.
Catch Up on Automobile Payments: If you are behind on your auto loan payments and you file for bankruptcy Chapter 13 in Rancho Cucamonga CA, you may be able to keep your car as long as you complete your repayment plan and pay off any past-due debt. You will still be required to make your normal auto payments, though. The lender is unable to seize your car as long as you adhere to your repayment schedule and car loan terms.
Reduce Car Loan: In Chapter 13 bankruptcy, you might be able to lower the amount of your loan if it exceeds the worth of your car. This will only be an option if you bought the car more than 2.5 years prior to declaring bankruptcy.
Does everyone who files for bankruptcy Chapter 13 in Rancho Cucamonga CA get to keep their vehicle?
Unfortunately, no, because each situation is different. Only Chapter 13 filers who can afford to pay off their car loan and bankruptcy repayment plan will be permitted to keep their vehicle.
You might need to provide evidence that your auto payments are a reasonable expense. Your creditors will object if it appears that you are utilizing money in an unreasonable manner since they want to be paid as much as possible. They might contest your claim, for instance, if you make an overly large car payment or want to purchase a second automobile that you don’t need. You should have an experienced bankruptcy lawyer analyze your case because every bankruptcy case is different in order to decide the best course of action.
How can I keep my car safe throughout bankruptcy?
You will require the assistance of an expert lawyer if protecting your assets is a top priority for your bankruptcy. A knowledgeable attorney who can assist you get the result you want is essential since bankruptcy proceedings may easily become complicated. Contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free consultation with a lawyer who can help with your bankruptcy Chapter 13 in Rancho Cucamonga CA.