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 Resnik Hayes Moradi LLP are here to help. We are committed to helping you resolve your debt problems while keeping your property.
Schedule a free initial 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 Sherman Oaks and Los Angeles.
To learn more about filing for bankruptcy with Resnik Hayes Moradi LLP, call us at (213) 344-0043 today.
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