A Chapter 13 can allow a person to reorganize a variety of debts. For a car specifically, the options include:
-The loan can be modified so the secured claim is equal to the value of the vehicle, and can be paid off at 5.25% over 60 months (5 years);
-The car payments can be caught up on (cure and maintain); and
-The interest rate can be crammed down to 5.25% and the payments extended to 60 months even if you only have three years left to make the monthly payments lower and more manageable.
However, every Chapter 13 case is different and how debts are reorganized really depends on a variety of factors and the goals of the client.
Some people need the added protections and features that a Chapter 13 bankruptcy offers and may choose to file a Chapter 13 after a consultation with Mr. Schwitalla. Still, others may not want to file a Chapter 13, but may not qualify for a Chapter 7. In a Chapter 13 bankruptcy, you can obtain full or partial reductions in your unsecured debts and a payment plan for your home, car and other properties. The additional cash flow you get can make all the difference in the world — allowing you to keep your mortgage current and reduce your stress.
Contact Miami Bankruptcy to find out more.