Auto Loans and Bankruptcy

San Diego Auto Loans and Bankruptcy Lawyer

Dealing With Car Loan Problems in Bankruptcy

Although few of our bankruptcy clients are forced into Chapter 7 or Chapter 13 by pressure from creditors holding car notes, most of our clients need to decide what to do with a motor vehicle with a significant unpaid loan balance. At Law Office of Daniel G. Shay, our thorough understanding of the U.S. Bankruptcy Code helps people find the best available solutions to problems related to car loans.

If you stand to benefit from an attorney’s advice about your options concerning a creditor’s claim secured by your car or truck, contact Law Offices of Daniel G. Shay in San Diego for a free initial consultation.

Call 619-222-SHAY(7429) to Discuss Bankruptcy Car Loan Redemption With a Lawyer

Let’s say you owe $15,000 on a motor vehicle currently worth $10,000, and you’re behind on the payments. You have several options:

1. You can turn the vehicle over, or “Surrender” it, to the creditor holding the car note and get a discharge of any amount you owe in excess of the vehicle’s market value.

2. In a Chapter 13 case, you can resume current payments on the vehicle and pay the past-due amounts over time in your debt repayment plan.

3. You may be able to perform a Chapter 13 “cramdown” of the unsecured portion of the debt by paying the creditor the market value of the vehicle through your Chapter 13 plan and you get a discharge of the unsecured portion of your loan balance upon plan completion.

At Law Offices of Daniel G. Shay, we know how to find lenders who will consider refinancing your car at its market value, even while you’re in a Chapter 7 bankruptcy. Known to bankruptcy professionals as Section 722 car loan redemption, this process can help people keep their vehicles and lower their monthly payments — after all, the loan amount is based on current value rather than the original purchase price.

We can advise you about the eligibility guidelines for 722 redemption loans. For example, you can’t have had a car repossessed in the last ten years. If refinancing your car in bankruptcy can help you reduce the payments on a vehicle you want to keep, we can show you how to make a redemption car loan work.

For additional information about this approach to car or truck loan problems, contact our office in San Diego for a free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.