Keeping Your Car in Chapter 13 Bankruptcy
If you are behind on your car payments and unable to keep up with the debt, you may be concerned about repossession of your vehicle. Fortunately, there are ways to avoid this unfavorable outcome. Chapter 13 bankruptcy may be able to pull you out of the financial hardship you are enduring and allow you to keep your car at the same time.
Do not let getting behind on your car payments cause you to lose your car to your creditors. With the assistance of the Houston bankruptcy attorneys at the Russell Van Beustring P.C. you may be able to pay off much of your debt by filing for Chapter 13 bankruptcy. Call today at 713-973-6650 to learn more about your options in court.
Means of Retaining Ownership
There are several ways that Chapter 13 bankruptcy can help you save your car and prevent repossession, including the following:
- The automatic stay put on attempts to collect you debts will bar your creditor from repossessing the car until your repayment plan is approved. If this plan includes the back payments you owe on the car and you stay current with future payments, your car cannot be repossessed.
- If your car is repossessed shortly before you file for Chapter 13, you may still be able to get the car back in the same manner mentioned above.
- If you car is worth less than you owe, Chapter 13 may allow you to perform a “cramdown”, which reduces the value of your loan to that of the value of the car, freeing up the remainder as unsecured debt.
With all of these options at your disposal, Chapter 13 bankruptcy is a very attractive option for disposing of unmanageable debt by consolidating everything you owe into a more realistic repayment plan that fits your income.
Losing your car to repossession is a serious setback that can exacerbate already problematic debt issues. To save your vehicle and take care of your debt with the income you have available, call the experienced Houston bankruptcy attorneys at the Russell Van Beustring P.C. today at 713-973-6650.