{"id":1314,"date":"2019-05-12T11:20:48","date_gmt":"2019-05-12T11:20:48","guid":{"rendered":"https:\/\/recoverylawgroup.com\/?p=1314"},"modified":"2025-09-16T12:22:21","modified_gmt":"2025-09-16T12:22:21","slug":"reducing-your-car-debt-chapter-13-bankruptcy","status":"publish","type":"post","link":"https:\/\/recoverylawgroup.com\/staging_D\/reducing-your-car-debt-chapter-13-bankruptcy\/","title":{"rendered":"Reducing Your Car Debt \u2013 Chapter 13 Bankruptcy"},"content":{"rendered":"

Have did you buy your car using finance options over the last two and a\u00a0half\u00a0years ago? Then if you are struggling with paying back the car loan, the Chapter 13 bankruptcy<\/a> in most cases help you\u00a0reduce\u00a0the rate of interest on the car loan or\u00a0reduce\u00a0the total balance of it.<\/p>\n

Let\u2019s understand further with a scenario<\/strong> \u2013 if your car loan balance is $20,000 at the end of three years and if the value of your car is just $10,000, then the remaining $10,000 converts as an unsecured debt (since the car doesn\u2019t secure this). A percentage of this unsecured amount may or\u00a0may not be\u00a0paid off by you,\u00a0in case\u00a0you formulate a Chapter 13 repayment plan. In\u00a0a lot of\u00a0cases, the debtors repay only a small\u00a0portion\u00a0of their unsecured debts.<\/p>\n

This opportunity\u00a0is seen\u00a0as savings for the debtor where the car loan balance is reduced. The assured benefit for the Chapter 13 bankruptcy filings is that the principal balance on the car loan\u00a0can be\u00a0reduced to the replacement value of the car \u2013 in the above case, it would be $10,000. The\u00a0additional\u00a0benefit for the debtor is that the interest rate would be set between four to six percent. Thus the claims that Chapter 13 bankruptcy for saving your cars and reducing your car debts is definitely a cheaper, effective and better choice compared to Chapter 7 bankruptcy. Chapter 7 bankruptcy is not consumer\/ debtor friendly.<\/p>\n

Living in Los Angeles?<\/strong> Getting a good car deal with your car debts\u00a0is made\u00a0possible with\u00a0Recovery Law Group. Their\u00a0bankruptcy attorney Los Angeles<\/a>\u00a0team can strike the beneficial plan around your car debts using Chapter 13 bankruptcy. Call in and book their appointments. The law firm also serves Nevada and Texas states.<\/p>\n\n

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