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Chapter 13 Bankruptcy-keep your car and lower your monthly payment!

Chapter 13 Bankruptcy-keep your car and lower your monthly payment!

Don’t give up your used car…. now is the time to keep your car and lower your monthly payment!

Over the last 19 years of Chapter 7 and Chapter 13 bankruptcy practice in Milwaukee and Waukesha area, one of the most common concerns I hear from clients is, “I need to get rid of my car.  I just cannot afford it!”  There was often an easy solution for this, surrender the vehicle, wipe-out the bad car loan with a Chapter 7 bankruptcy, get a fresh start, and buy a more affordable vehicle once the bankruptcy was finished.  The problem today is that due to COVID-19, supply-chain interruptions, and historically high inflation rates, there may not be a more affordable vehicle than the car you already own.  Car dealers cannot get enough new car inventory, which has caused the price of new cars to increase and the prices of used cars to explode!  The Wall Street Journal notes that according to the latest Labor Department data that prices of used cars have risen by 40.5% over the last year.  That means a used car that could be purchased for $15,000 a year ago, on average has risen in price to $21,000 today!

The good news:  there is a way to keep your vehicle (whether you are current, behind on payment, or facing repossession) and in almost all cases significantly lower your monthly car payment.  A Chapter 13 bankruptcy provides relief by allowing you to:

  1. Lower the interest rate on your car loan.
  2. In many instances, lower the balance owed on your car loan.
  3. Stop repossession. (In many cases you can get back a car that has already been repossessed.)
  4. Reduce or eliminate other bad debt.

Don’t stay trapped in a bad car loan.  Don’t pay for a wildly over-priced used car.  Most Chapter 13’s are filed for zero attorney fees upfront. Contact us today to learn how you can get relief.  Consultations are always free!

 

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