Are you running out of options to keep up with your bills, such as your car payment? Filing for Chapter 13 bankruptcy in GA, allows you to create a repayment plan that reduces your car loan and interest rate so that you can retain ownership of your vehicle.
Many individuals constantly feel the strain on their finances. It is getting worse due to current inflation and the residual effects of the pandemic. If you are behind on your payments and have defaulted on the loan, you are at risk of having your vehicle repossessed. The experts at CMC Law will provide you with invaluable insights and guidance to help you win your case.
Filing for Chapter 13 Bankruptcy in GA
Pursuing Chapter 13 bankruptcy in GA is the best way to keep your car if you have fallen behind on your payments. Bankruptcy Chapter 13 consolidates your debt into a repayment plan that is based on your current expenses and income. If this repayment plan is approved by the judge in your case, your past-due vehicle payments will be consolidated into a single monthly payment. Payments can be made for the next three to five years to reimburse your creditor.
Filing for Chapter 13 Bankruptcy Can Reduce Your Car Loan and Interest Rate
A car loan is considered a secured debt. When you file for Chapter 13 bankruptcy in GA, you can modify the terms of your car loan and reduce your interest rate. This new amount will be dependent on several factors including your current income, credit history, and car repayment history. In many cases, your interest rate has the potential to be reduced anywhere between 3.25%-6.25%.
Much of the specifics will be determined by the original date that you purchased your vehicle. If you bought your car more than 910 days (or 2.5 years) before filing for Chapter 13 bankruptcy in GA, you may be able to pay the current fair market value of the car with a reasonable interest rate instead of the amount that you still owe. In Georgia courts, this interest amount is the prime interest rate on the day that you filed for bankruptcy with an additional 2% added.
If you purchased your vehicle within 2.5 years (or 910 days) before filing for Chapter 13 bankruptcy in GA, you will be required to pay the full amount back to your creditor. However, you still can reduce your interest rate, which has the potential to save you thousands of dollars while allowing you to keep your vehicle.
File Bankruptcy in GA with CMC Law to Maintain Ownership of Your Car
When you file for Chapter 13 bankruptcy in GA, an automatic stay is placed on your creditor so that they cannot take your car from you unless they have been given a court order. This will help to reduce your stress and give you the time you need to produce a repayment plan. Then, you can lower your interest rate so that you can retain ownership of your vehicle.