Auto Loan Cramdowns

In a Chapter 13 Bankruptcy filing (one that involves monthly payments over time) certain auto loans can be "crammed down."  The general rule is that auto loans over 910 days old can be "crammed down" in these plans.  For example, if you own an automobile and it is worth $5,000 but there is a loan against it for $10,000, you can put in your plan the real value of your car for the loan (in this case $5,000) and pay that over a period of time (oftentimes 60 months).  With the power of the United States Bankruptcy Code, you can pay creditor moneylenders the actual value of your car - not some fictional value imagined in a computer somewhere.

Everyone's case is fact-specific and requires special attention.  Consult an attorney in person if you intend to file Bankruptcy.

Call us today at 651-704-9600 for a free preliminary consultation about your case.