Are you behind on your car payments?
One of the biggest benefits of a Chapter 13 bankruptcy filing is this: If you purchased a car more than 910 days prior to filing for bankruptcy, you’ll only need to pay your car lender the amount your car is worth. In many instances, you will not have to repay the amount of the loan you took out.
This really helps debtors whose cars have declined in value.
We have more good news.
In a recent case decision, a debtor was trying to calculate how much he owed on his 2005 Chrysler Touring, which had a base value of $13,600. Not only did the bankruptcy judge discount the value of the car by $1,712.50 after calculating mileage, the judge then discounted another $7,300 because of repairs the car needed.
What did this mean for the debtor? Instead of making $13,600 worth of payments, or even $11,887.50 worth of payments after discounting for mileage, the debtor only needed to make payments amounting to $4,520.45 under its Chapter 13 plan.
That’s quite a benefit for someone faced with a money crunch. To find out other ways in which you could benefit from a bankruptcy filing, contact us at 702-880-5554 to schedule a free consultation with our experienced and knowledgeable bankruptcy lawyers.