Cram Down on your Vehicle

On Behalf of | Jul 7, 2010 | Bankruptcy |

In a Chapter 13 Bankruptcy, if a vehicle was last financed over 2.5 years prior to the petition then the debtor can pay the value of the vehicle rather than the amount owed.  The amount owed over what the car is worth should be discharged.

That is a tremendous advantage in most cases.  That is especially true if the debtor has “rolled negative equity” from a previous car into the note on the current vehicle.
Even if the vehicle was financed within the last 2.5 years, typically a debtor filing a Chapter 13 Bankruptcy can substantially reduce their monthly payments on their vehicle by paying it through the Chapter 13 Plan.
Mobile homes are considered vehicles most of the time.  Mobile homes and motor homes depreciate very rapidly.  

Archives