How Can Moreno Law Firm Help You Save Your Car from Repossession?
Car debt became one of the main reasons why debtors turned to bankruptcy chapter 13. It provides special options for changing secured loans. One feature of that chapter 13 is to stretch payment durations up to sixty months. Payment stretch can lessen the monthly car expense, however, it must be done carefully especially if the car is older and not likely to reach the full stretched term. Another advantage is the interest rate adjustment on a car loan. In most cases, the debt must be paid at the rate of the trustee, which is usually lesser than the contract interest rate. Car loans that have high rates may see a significant reduction in the monthly computation under the plan. The most interesting tool of chapter 13 is the collateral’s value. If available, the plan takes care of the value of the property at the moment the bankruptcy is filed, not the bigger amount of money borrowed on the loan.
Losing your car to repossession can have a terrible effect on your lifestyle and financial condition. This can be prevented in chapter 13 bankruptcy. Bankruptcy offers a number of options to solve the car loan issues. Moreno valley attorney can help a lot to stop the threats of car repossession. When chapter 13 bankruptcy is filed automatic stay stops the collection. The lender should receive court approval to repossess a vehicle after filing for bankruptcy. This procedure will allow the borrower to pay off his car loan while he is behind payments. In some situations, chapter 13 gives better financial terms for a car payment.
On the other hand, restructuring of car loans means that if a car is kept in a chapter 13 bankruptcy that was bought within the 910 day period, the debt borrowed should be paid completely. However, if the car was bought outside 2 and a half years or 910 days, the car’s value is capped on the amount of debt that should be paid that serves as a secured plan in chapter 13. For other debts, the automatic stay made upon the petition stops the collection activity by the lender. Remember that a creditor can’t repossess a vehicle as long as the automatic stay is in effect. In some scenarios, repossessed car shall be returned to the debtor after filing for bankruptcy. So if your can has been repossessed, you should consult an attorney at once and go straight to filing chapter 13 Moreno Valley.