Skip to Content
We Speak English, Spanish and Farsi 213-344-0043
Auto Loan “Cram Downs” Top-Rated Attorneys in Los Angeles

Auto Loan “Cram Downs”

Chapter 13 Bankruptcy Attorneys in Los Angeles

One benefit of a Chapter 13 bankruptcy is the auto loan “cram down.” Under certain circumstances, the outstanding balance on a car loan can be reduced to its fair market value. This can be very beneficial to people who are “upside down” on their car loans and owe more than their car is worth. If you have questions about auto loan cram downs and are considering bankruptcy, the attorneys at RHM LAW LLP are here to help. We are committed to helping you resolve your debt problems while keeping your property.

Schedule a 30-minute risk-free consultation with our Los Angeles bankruptcy lawyers when you contact our firm today.

How Does a Cram Down Work?

Since cars depreciate so quickly, it is not uncommon for a person to owe significantly more on the vehicle than it is actually worth. Chapter 13 bankruptcy offers relief to people who are in this situation. A Chapter 13 cram down allows you to modify your car loan and pay less than the original terms of the loan.

For instance, if you owe $15,000 on a car, and its fair market value is determined to be $10,000, a Chapter 13 bankruptcy will strip $5,000 of debt off of your shoulders and give you three to five years to pay the remaining balance.

In order to qualify for an auto loan cram down, you must have purchased the vehicle no sooner than 910 days prior to the bankruptcy filing.

To determine if you are eligible for an auto loan cram down, it is important to consult with an experienced bankruptcy lawyer.

Contact Our Los Angeles Bankruptcy Lawyers

Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.

To learn more about filing for bankruptcy with RHM LAW LLP, call us at (213) 344-0043 today.


We Wrote the Book on Bankruptcy

Get Your Copy Today
We Make Debt Relief Easy

Committed to making the process as stress-free as possible for our clients, our Los Angeles bankruptcy attorneys and dedicated staff will handle everything for you. From filling out paperwork through getting end results, we will work to help your case run smoothly and efficiently. We serve our clients in English, Spanish and Farsi.